Indices closed Down .01% to .51%.....

On the 2nd anniversary of market lowest point, indices closed slightly down.Nasdaq was the weakest with .51% loss......

Nasdaq weakness is worrisome as internals of Nasdaq were almost 2 to 1 on the downside. SMH broke below 50 DMA of 34.59 closing @ 34.38.This is the first break of 50 DMA since September by this widely followed semiconductor index.

There is a "real concern" of inventory build up in Semis & Fibre-Optics area. Some analyst are looking for 2 Q for Fibre-Optics inventory to come in-line. MRVL warned about their inventory few days back.

As i follow TAPE closely, i do not like the TAPE in most semis & chip equipment maker.They all were showing "profound weakness" lately.

It will be PRUDENT to stay "underweight" in exposure to the market.

I am also noting that mining stocks are also showing weakness.

SO...many sectors are showing weakness & IF they fall below 50 DMA .......then next support MAY be near 200 DMA....

Stock picking is "extremely CRITICAL" @ this juncture.......there is no science to it just watch your stock TAPE action closely.....

The way i see it, try to LOCK gains & try to trade more FREQUENTLY.

We may get CATALYST for a rally, but it will be wise to sell the rally from hereon.......

Buy the WEAKNESS & sell the rally......is what i see until next earning season......

AH Futures Down

AH Asian Markets Down

AH Gold Down

AH Oil UP

BLOG does NOT give buy or sell.

Saleem