Market Summary

Market has weakened considerably since last Wed. Media says that is technical selling of momo’s and bubbly stuff and I agree. But overall the market has been frothy – and fewer stocks are driving the indices – and the technical weakness here indicates a real lack of non-nano buyers. Next day or two may bounce a bit around the 50 day averages – but the weakness indicates that a 200 day retest is likely (and LONG overdue). Intermediate-term, a sector rotation is more likely than a more serious decline. I just don’t see any indicators of the sort of crisis-type event that would precipitate that. Longer-term, valuations suck and the stock market remains a poor place to deploy anything that isn’t trading capital.

Ideas to look at further (technicals look safe for trade at least) – Unilever (UN or UL); Pepsi (PEP); BritAm Tobacco (BTI); Philippine Long Distance (PHI); Ritchie Bros (RBA); Peabody Energy (BTU); Cullen Frost (CFR); HDFC Bank (HDB); Toronto Dominion (TD); TransCanada Pipeline (TRP); Grupo Aeroportuario del Pacifico (PAC)