Events Calendar

Current Weather

Manatee Road Watch

Sean Tampa Bay yacht Management Bills Discount Center - New & used Furnature, Appliances and More!

The Bradenton Times Polls

Poll Question: What should the Tampa Bay Buccaneers do with the first pick of the NFL Draft?

 Draft Marcus Mariota  Draft Jameis Winston  Trade the pick for more picks More polls »

The Robyn Report with Robyn Davis

Change Text Size: Larger  Smaller

News Section: Business and Financial

Ask Guido: Your Investment Resource

Published Monday, August 4, 2014 11:00 am

Stocks come into the new week oversold on a short-term basis and nearing potential support levels. Widespread selling last week led to greater than 2.5% declines on the Russell 2000 and S&P 500 and has left the Dow Industrials down slightly on what is indeed turning out to be a year of transition.

This, combined with some evidence that investor sentiment is shifting toward pessimism (see the chart below) may be sufficient to prompt a new round of buying in stocks. However, with the damage that has been done to the trend, lingering uncertainties about whether the economy can get and stay in a higher gear, and seasonal patterns that could become self-fulfilling, there is increased risk that the buy-the-dip mentality that has supported stocks over the past year-and-half could be vulnerable.

Breadth weakness is increasingly becoming a headwind for the popular averages. This week’s update shows the percent of industry groups in up-trends plummeting to the lowest level of the year, and the number of stocks making new 52-week lows continues to climb steadily higher. With breadth deteriorating even prior to last week’s selling, the quality of the rallies that emerge is critical.  

How far they are able to go, and what kind of participation they attract matter much more than the relative ugliness seen on down days. If the up-trend has expired, it is too early to look for evidence of capitulation. If it has not, the current oversold conditions could spark a robust rally that carries above resistance near 1970 on the S&P 500. A failure to break through that level, or to hold support in the 1920-1900 range, would add to the evidence that a cyclical peak is in place.


Got Questions? Ask Guido 


Article provided by Robert W. Baird & Co. with the authorization of its author for Evan Guido, Vice President, Financial Advisor at the Sarasota office of Robert W. Baird & Co., member SIPC. The opinions expressed are subject to change, are not a complete analysis of every material fact and the information is not guaranteed to be accurate. 



Evan R. Guido

Vice President of Private Wealth Management

One Sarasota Tower, Suite 1200

Two North Tamiami Trail

Sarasota, FL  34236-4702

941-906-2829 Direct Line

888 366-6603 Toll Free

941 366-6193 Fax

Join the conversation post Facebook comments here or on our site at the bottom of article.


  In Addition to Facebook Comments You Can Also Post Comments Below

Non-Facebook Comments:

Click here to add a Non-Facebook comment to this page

 Sign up for our free news subscription - a great way to stay informed!

News World Round UpSports Roundup

Manatee Rural Health Certificate

MidTown Manatee - Shop here - Work here - Play Here - Live Here - Worship Here - Dine Here


Name Date
Chase Bowman February 24, 2015
Arlene McDonald February 26, 2015
Michael Provost February 12, 2015
Joseph Brunory February 19, 2015
John Meiklejohn February 20, 2015
Obie Hill February 12, 2015
Alfred Gaspari February 21, 2015
Betty Hager February 20, 2015
Stacey Weinrich February 10, 2015
All Obituaries

Copyright © 2009 - 2014 | The Bradenton Times | More than just an Online Newspaper |
405 26 Avenue Bradenton, FL 34205
Phone: 941-896-7857 - Privacy Policy - RSS Feed
Template provided by Free CSS Templates