Microsoft And Google Weigh On Stocks But Volume Fades

Missing analyst estimates sets up the stock to get hammered, Microsoft (MSFT ) and Google  (GOOG) did just that. Both stocks were tremendous laggards and were the majority of the reason why the NASDAQ was down over 1.2% for the day.

The bright side, volume came in lower than the previous day. Options expiry failed to boost volume as it has done in the past. Friday marked Day 4 for the NASDAQ and Day 3 for the S&P 500. If we were to see a distribution day prior to a follow-through day it would spell trouble for our attempted rally. We are still searching for a follow through day beginning Monday.

Regardless of my opinion (I don’t think we are in a new bull market) if we do manage a follow through day, I will gladly take it. At this point we do not have a leadership group in place. Oil stocks were our leaders and with the IBD100 in negative territory is leading me to believe we have quite some time until we can restart a new bull market. We’ll be able to spot a new bull market, it’ll be when new leadership groups will start showing up.

My position here is to keep a LARGE cash position. There is no need to be a hero in this market. I want to have as much capital hanging around to put to work during a new bull market. Be patient.

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