Change of mood today!

[andyman]

Today could be a important day as the market mood is changing.
Suddenly, the all days long negligence of the high oil price and (the positive interpretation of the negative fact) broke up when FedEx confirmed the deep impact on their earnings (it was incredible how the market could believe it has no or mild impact only ).
In the last days the market had only (relative) low volumes. Technically low volumes supports trend changes.
Also the charts in the major indices are worrisome.
As I noticed in the past, in times of trend changes even good stocks reacted negative (but most not that strong) and technical clear situations did not work out. This may be due to high margined traders who run into margin call and have to liquidate even their good positions.

I feel we should take some caution here.
We should tighten the parameter for selecting the stocks for new positions.

andyman

[eliteG]

I agree andyman  I think it makes the cheaper $ stocks more of a risk.  I have begun to look not only at higher priced stocks but also those in excellent long term position.  The 52 week high list is a great place to look.  Through the recent bear market, stocks were still making 52 week highs.  And for longs...thats where you want to be.  I also am adding group analysis(easier to do with >$20 stocks).  The groups that are moving down together would probably make good shorts...

I have to add though that mood is a dangerous thing.  After some years in the market I find when people around me believe we are at a top...we need to watch out for a spike up.

Also to combine your mood changing idea with David's Indian/Chinese markets theory...I think we need to look for stocks that service Indian/Chinese markets.  This may be a long-term thought...

In the end Oil-prices going up is bad for everybody.