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S&P 500 Futures, Dow Jones Futures Active; 195 Reasons To Be In Cash

S&P 500 futures were little changed late Monday after the S&P 500 index, Dow Jones industrial average and Nasdaq composite tumbled in Monday’s session. While Tesla (TSLA), Amazon (AMZN), Netflix (NFLX), Intel (INTC), Walmart (WMT) and Facebook (FB) were high-profile losers, there was no place to hide. Nearly all of IBD’s 197 industry groups lost ground.

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In fact, just 3 groups posted daily gains, but it was really just two. The Building-Residential/Commercial industry only rose because high-priced NVR (NVR) jumped, distorting the price-weighted group’s performance. Several top homebuilders fell 3%-5%. The Medical-Managed Care group eked out a 0.1% rise, but largely on reports that Walmart might buy Humana (HUM). The only group that had a clear, notable gain was Mining-Gold/Silver/Gems, up 1.3%.

Even top stocks in resilient sectors such as apparel, defense and energy suffered losses, some significant.

The bottom line is that in a stock market correction, most equities will lose ground. Sure, some stocks will fight the tide and rise, just as some stocks fall during market uptrends. But the odds are not in your favor. And whether it’s The Hunger Games or the stock market, that’s a bad scenario.

This is a time to build on your watch list, adding and subtracting stocks along the way. Don’t assume that the old leaders, such as Amazon, Netflix and Intel, will continue to outperform the S&P 500 index in the next uptrend.

S&P 500 Futures

S&P 500 futures were a fraction below fair value. Nasdaq 100 futures were slightly higher. Dow Jones futures fell 0.1% vs. fair value.

The auto industry will be in the headlights Tuesday. General Motors (GM), Ford (F) and most automakers will release U.S. March sales figures.

Tesla also will release first-quarter production and delivery figures this week, perhaps as soon as Tuesday. The real question seems to be how much Model 3 production will miss Tesla’s latest targets.

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