Thursday, March 10, 2011

Longs eat Crow, U.S. markets drop 1.8%

Feels like a buyers strike and that's not good for long holders. IWM down 2.6%.

NYSE Breadth was 26 to 4 negative. Only 64 issues (mostly bond etf's) made 50-day highs.

GMCR was the big winner up 18 to 61.71 on news it will enter a a joint venture with SBUX to sell its products in stores. SBUX rose 3.43 to 39.97.

If this is the start of a correction, the best performing sector has to roll over and die. Well today's 3.64% drop in the XLE (Energy ETF) wasn't what longs ordered.

There was no safe place for longs as every sector finished in the red.

The E-mini S&P Contract is currently one point above the February lows. For the longs to have any chance, they must defend that line by Fri and Mon's close.

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