Yesterday was the worst day on Wall Street so far this year. The DJ-30 closed in 12,715 points, down 1.65% from the previous day. The SP-500 fell 1.71% and the Nasdaq.Comp. decreased 1.83%. Finally, the Russell-2000 descended no less than 2.36%.
From early in the morning, the bears took control of the market and did not quit until the day was over. All components of the DJ-30 reported falls less HPQ. In the case of the SP-500, about 482 components dropped, and only 174 components in the Russell-2000 experienced an increase.
This reaffirms the market deterioration in technical terms. All indexes minus the Nasdaq. Comp. broke the significant level of SMA 50 days. What's more, the Russell-2000 approached the SMA 200 days. Now, it seems inevitable that the market, through all its indices will challenge this important support level.Virtually all technical indicators show a large decline and still show no signs of being oversold. That means that the market would have room to keep down even before seeing a rebound. Indicators such as RSI, MACD and Stochastic show a very significant deterioration in the market.
In a circumstance like this is very difficult to find good candidates for long. Yesterday, our system found a few good candidates for longs. Three candidates for long.
GSV Capital Corp. (GSVC).- Price: US$ 18.91 (Var: +2.83%). Volume: 0.83 Millions of shares (daily moving average: 0.58 M). Good advance and restart a new leg up.
Motorola Mobility Holdings Inc. (MMI).- Price: US$ 39.37 (Var: +1.34%). Volume: 9.53 Millions of shares (daily moving average: 4.13 M). Nice advance with high volume.
Atlas Energy (ATLS).- Price: US$ 35.99 (Var: +1.27%). Volume: 0.69 Millions of shares (daily moving average: 0.39 M). Good advance but is overbought.
Three candidates for short.
Sony Corporation ADS (SNE).- Price: US$ 18.24 (Var: -9.25%). Volume: 4.89 Millions of shares (daily moving average: 1.31 M). Big gap down wit huge volume. Next stop around US$ 16.50.
Goodrich Petrol Corp. (GDP).- Price: US$ 15.35 (Var: -6.63%). Volume: 1.47 Millions of shares (daily moving average: 1.14 M). Good fall but is short-term oversold.
Best Buy Company (BBY).- Price: US$ 21.32 (Var: -5.87%). Volume: 29.62 Millions of shares (daily moving average: 7.80 M). Big fall with huge volume. Next stop around US$ 17.00.
Free Down Trend Stock Picks includes three stocks that have experienced daytime significant price falls. These stocks have been selected from a list includes stocks that have shown the worst performance of the last 52 weeks.This means these are stocks with a medium-term downward trend.
When Hell.A. Freezes Over (Photo credit: Wikipedia)
