Since the November lows, almost all sectors and stocks have risen and are now higher. However, a few key stocks and sectors have made additional new lows and I think they are sending an important message that the current correction is not yet over.
The Dow Transports ($TRAN) made a new low:
The Banking index ($BKX) made a new low:
Bellwether General Electric (GE) made a new low:
Caterpillar (CAT) made a new low:
JP Morgan (JPM) also made a new low recently:
Dow Chemical (DOW) is in free fall:
Internationally, the French stock market blue chips ($CAC) made a new low:
None of these is good news and all portend further weakness in the markets before the spring rally can occur. I am still looking for a re-test of the November panic lows in the S&P 500 and Dow Jones Average. I remain short, primarily via KSS, NEM, GFI and PAAS.