Stock Market Commentary for Thursday, August 11, 2005

Once again, the chatterers blamed high oil prices for the market decline on Wednesday, but it was simply a continuation of the recent correction after a brief dead-cat bounce on Tuesday.  There was an early rally, but the overall market tone is still to "sell into any rally".  I'd rather see a day where the market starts out with a very negative tone and heads down to "selling exhaustion", and then we'll get an end to the correction.

The current correction continues to be strictly technical in nature, not the result of economic or business fundamentals.

There was some chatter about Cisco (CSCO) giving a revenue growth forecast a little less strong than expected, but that's more of a speculator's reaction than an investor's reaction.  Cisco is doing fine, albeit not as well as before the boom busted.

NASDAQ trading volume was moderate (1.88 billion shares), and breadth was moderately negative, with 1.26 losers for each gainer.  This was finally a moderate sell-off, but still not a heavy sell-off.

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-- Jack Krupansky