Well, I am a little frustrated here since somehow the market bounces / goes sideways but quite a few of our positions are now down below the 50 day moving average... that's an interesting divergence that marks this pullback different (thus far) than the previous three episode since July.
Atheros Communications (ATHR) despite beating estimates AND raising guidance last week [Oct 20, 2009: Atheros Communications Trounces Analysts Estimates; Increases Guidance], has now faltered - we added back to our position post earnings report, but now have to offer it back to the market at a small loss, and will cut our position by 2/3rds until we see relative strength return. 1/3rd was sold yesterday in the $25.20s and another 1/3rd this morning in the $25.60s. This *was* our largest position at at almost a 3% stake.
Hmmm... double top clear as day on this one.
At this point I am a little confused at what stocks are supporting the market other than the typical Amazon.com, Apple, Google cohort since so many of the small and mid caps seem to be breaking down. Intellectually these type of divergences should bode ill for the market since 20 big cap stocks cannot lug around the entire market ever upward. Further, if companies that just beat AND raised guidance last week can't be leaders, you have to scratch your head.
I remain cynical on this bounce due to so many individual breakdowns in charts. Until that changes it's hard to believe in just another easy bounce.
Long Atheros Communications in fund; no personal position