Rough day yesterday, but no major concerns (yet).
It was a pretty rough day in the stock market yesterday...as it sold-off materially late in the day for the first time this month. Given the massive rally we've seen since early June, this action is not a major concern...especially since the decline came on relatively low volume and benign breadth. Therefore, although the stock market is overbought on a short-term basis, we're going to have to see a lot more downside follow-through before we could raise a yellow warning flag on the market (much less a red one).
CSX raises serious concerns about the economy.
CSX fell more than 10% and broke several key support levels. This decline in CSX raises SERIOUS questions about the Transportation sector...and thus the U.S. economy. Click here to find out why...and what levels you should be watching in both CSX & the DJ TRAN Index...in my premium newsletter.
Gold is overbought, but still has a lot of upside potential
Gold bounced once again after hedge fund titan, Ray Dalio, made bullish comments about its long-term upside potential. Gold has already seen a nice break-out, but it is now facing some short-term technical headwinds. HOWEVER, if the yellow metal can break above a key resistance level, it's going to be VERY bullish for this closely followed commodity. Click here to learn more about what headwinds I'm talking about and the levels you should be watching...in my premium newsletter.
NFLX: Below $320, the stock has little downside support
Netflix (NFLX) reported weak earnings last night...sighting low subscriber growth both here and abroad. This has NFLX stock trading below its sideways range...which makes it VERY vulnerable to a major loss of momentum (and a lot more downside movement). Click here to access my premium newsletter...and find out which level the stock NEEDS to regain to calm fears.
Matthew J. Maley
Chief Market Strategist
Miller Tabak + Co., LLC
275 Grove St. Suite 2-400
Newton, MA 02466
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