Leading Stocks Have Fallen Apart

Many of the leading stocks and sectors in the market have completely fallen apart in recent weeks. From high fliers such as Baidu.com BIDU, the iShares Silver Trust ETF SLV and even Apple AAPL to entire sectors such as energy and basic materials, the damage in the broader averages does not quite capture just how far some stocks have fallen. This could be interpreted as healthy, or it could be signaling far more ominous things to come. Tuesday is shaping up to be a nice buying opportunity for aggressive traders looking to play a bounce, but it takes courage given the very ugly action. Buyers should be looking to keep their stops tight and hope to see an afternoon bounce that could follow through into tomorrow. If however, no rally materializes, we could very easily see the major averages finish on the lows as bulls are likely becoming more and more discouraged at this point.