Yesterday Lexmark (LXK) got smacked. Today Human Genome (HGSI) is getting smacked.
A few times I have expressed an opinion about the equity market not rewarding risk takers. The types of moves we have seen in these two stocks tell me that risk is still not being rewarded and may not be rewarded for a while.
I am surprised by how much the market has moved in the last two days. While oversold comes to mind I have to wonder if the buying demand I thought was coming has already come and the move up I was expecting has already come. If so, I was wrong about magnitude and time frame.
The SPX cash index is still a few points above its 200 DMA but it is close. The 200 day held as support in late August, as one would expect, an hopefully it will hold again here.
Wikinvest Wire
4 comments:
How do I quickly check this: "SPX cash index is still a few points above its 200 DMA"?
Roger, the SPX went below the 200 day MA in Nov 04 and Apr May 05; do you use other parameters to change your holdings in a situation where the 200day MA could lead to a whipsaw? Thanks
to prevent whipsaw I start slowly. See the post timed right around the market close called Panic....
This could easily be a head fake. I will sell a little tomorrow late in the day if we have not gone back above.
Roger: If the market is not "rewarding risk takers", then who, in your opinion, is the market rewarding?
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