Stock prices slumped for the third straight week as more amateur/retail investors gave in and sold their stocks at already depressed prices, likely locking in large losses for themselves.

Their behavior was based on the jobs report that hinted at declining employment as struggling companies halt hiring or begin layoffs. Adding to their pessimism was the Friday manufacturing report which also showed a slowing of activity.

Our analytics, however, continue to indicate the “smart money” institutional investors are not among the sellers. For reasons unknown to us they remain optimistic and are holding their shares through this momentary market decline.

Since we do what they do, we hold too, which is resulting in a “give back” situation as many of our long positions slump in price. Many of our long gains declined, with some positions moving from gain to loss at the moment.

No trades indicated but for one in Level 3, so nothing to do but wait for the holiday-shortened week to get underway and see if institutions take advantage of depressed prices to buy some bargains, raising prices.

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