Pickers’ Market

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A few bright spots in a mostly dull market might affirm that fund managers are loading portfolios with only the best stocks to show their customers. There could be other reasons, but we won’t get into that. Here all that matters is what is and not what should be.

While we see some solid performers, such as our recent selectee Walker & Dunlop, Inc. (WD), blow up out of a solid technical base, it’s the overall market that stumbles with major indexes posting distribution under their major MA’s.

The recent distribution offsets whatever accumulation may have happened in the weeks leading up to this. That may have been a very easy 20% WD gave us, but it’s since crashed. Anyone buying recent top screen candidate¬†TAL Education Group (XRS) should take it as a warning and haul in the profits.

We’re bound to see more upside leaders going into the end of the year. Though the overall bias stays Bearish here.

So, as always, be careful.