We got some pretty bullish action today. Not a good day to be short, particularly in the financials. Some upgrades really drove this group higher. But, besides that, there really wasn't much of interest going on during the day today. We have some afterhours fireworks as DELL has apparently disappointed and is down a few percent. Tomorrow we'll have the highly-anticipated report from GS. Today felt to me like the market got very optimistic ahead of earnings and today felt like a day where the bulls trapped the bears pretty good. It was a good countertrend day, but the volume was pretty low.
Short-term bias: bullish (I think the oversold rally has a bit more juice, but not too much more)
Intermediate-term bias: bearish (I still think this correction will take us lower, perhaps to 800 on the $SPX)
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:
Well, I was a day too early on DFS, as it rallied along with the other financials when it caught an upgrade. It gapped up above that $9.70 level and appears destined to fill that gap-down from last week. I was not impressed by today's rally in the stock, and I do still expect it to turn about and go lower. However, I'm not going to add to this one until I see some sign that the multi-day uptrend is cracking. In hindsight, I maybe should've just taken the stop loss earlier today. We'll see what happens tomorrow.
ALVR rallied through that trendline I showed this weekend, but I did not buy on that breakout, as the volume was sorely lacking in the stock. I'll keep an eye on this one.
PALM is pulling back quite nicely for us. It pretty much filled that gap-up from late June with today's early-morning decline. I'm liking what I see in PALM, and I plan to initiate a position tomorrow, starting small with the August $11 calls. A little weakness in PALM tomorrow would not surprise me, as DELL has poured some cold water over the tech sector with its earnings report tonight.
RIG, BNI, MDR, and FCX continue to rally slightly into resistance. I am still stalking these for shorts, but have not pulled the trigger yet. Fellow rail company CSX reported earnings after the close and is up slightly in the aftermarket. This should give BNI some upside tomorrow, in particular, as it trades up in sympathy with CSX. I would expect to see the other three stocks rally tomorrow, as well.
Postions: long DFS August $12.50 puts and $SPX index fund in 401k
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment