Short-term bias: bearish (we've had a very powerful rally the past few days, but I believe we will now be dragged lower, as today's action felt like panic buying by the bulls)
Intermediate-term bias: bearish (I still think this correction will take us lower, perhaps to 800 on the $SPX and I don't think we're ready to power higher quite yet)
Long-term bias: bullish (I believe we put in meaningful, long-term bottoms in March, and would use the aforementioned correction to increase long exposure)
Pick updates:
Apparently PALM wasn't ready to rally today. It hasn't done anything wrong technically aside from failing to follow the broader markets higher, which I view as a yellow flag.
DFS clawed higher, but I suspect it will fall tomorrow, as AXP has disappointed in the aftermarket tonight. I'm just looking for a chance to escape this position. I am not looking for a breakdown below established support in the $9 area.
DELL has set up a very nice short opportunity here. Note the inverted hammer it printed today. This is a show of weakness, which I suspect will continue tomorrow given the weak earnings after the close tonight in tech. $14 looks like a great stop loss level on a DELL short, though I did not pull the trigger today. Can you blame me? Trying to short the market lately has been a suicide mission. :-p I'm also liking the short setups in MDR, NOK, and FCX, both of which have tremendous downside from present levels and have fairly low-risk setups.
Postions: long DFS August $12.50 puts, PALM November $12.50 calls, and $SPX index fund in 401k
Buy the rumor, sell the news. I don't know anyone who wants to switch to Sprint, just to get their hands on the Pre. There are too many players in the cell phone market, as google plans on entering, AAPL's dominating, and don't forget RIMM, Nokia, and the pathetic Motorola. The market is rallying, but PALM has not participated. It's time to head for the exits with Palm and its overhyped PRE.
ReplyDelete