The market felt like it got 'saved' today. It was looking good for the bulls right out of the gates, but by lunch time, things were pretty bad for the bulls as the sellers were able to slice the market through 875 on the $SPX on the way to 870. However, the bulls were able to hold it and take us out of the day roughly flat. Maybe it was was optimism ahead of AA's report (they're up a bit after the close after reporting a better-than-expected disaster of a quarter with a $0.47 loss, but that's par for the course with this chronic underperformer). Maybe it was the PPT (Plunge Protection Team) stepping in to save the day. Either way, the bulls were saved...for now.
Short-term bias: bullish (I think AA's earnings could create some bullish momentum at the open Thursday, which may ignite a bit of a short squeeze)
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: All three existing short picks (AIG, BNI, and FCX) all put in high-volume candlesticks today well off their intraday lows. This makes me think all three have a bit of room on the upside for a little oversold bouncing. I still believe all three are good short candidates, but I will give them a bit of room to bounce before initiating shorts.
Position: long $SPX index fund in 401k
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment