“Try to be fearful when others are greedy and greedy only when others are fearful.”  - Warren Buffett

Market Commentary:

The pullback looked too telegraphed - some presents were seemingly gift wrapped and delivered.

• We found a couple of excellent set-ups in top-ranked Magnet stocks in an overall disturbing market.
• The broad market selloff hit almost all indexes and sectors. Primed for another move higher? It looks that way. It just seemed too easy.
• The Advance/decline line on the NYSE finally broke down. The Nasdaq A/D has deteriorated and peaked in February. This remains a stern warning.
• This week’s 52-week new-high/new-low numbers showed the number of new lows now double the number of new highs, sending off further caution signs.
• I am seeing potential “blowoffs” taking place that will become obvious as the tide goes out. As the calendar turns, look for heavy selling those names.
• The next 10% move up may be the hardest. I am not sure the smartest money is saying, “you look for the last 10%, I be patient and buy much lower by next summer.”
• It is dangerous to stay in overvalued stocks as their trend turns negative. “Algo-bots” will sell with the same intensity they bought. They do not care about “the story.”
• I still suggest stopping trying to call the top, and instead, look for great companies with excellent entry points.

Economic data and market clues:

Nothing to say here other than Merry Christmas & Happy Holidays!

Magnet® : 

Immersion                    IMMR

 Technip FTI                  FTI

GeneDX Holdings         WGS

FACTS:

Generac                           GNRC

Celestica                          CLS

Vistra                                VST

More By This Author:

Be Careful In This Unforgiving Market. The Tide Is Turning.
The Music Has Become Louder And Faster - Not The Time To Chase
Stop Trying To Call The Top