Europe and Asia were lower overnight. Gold ($GLD) is lower and the 10 year note is at 2.50% . Soft commodities are green. Crude is lower (under 97) and the dollar is at a 2 year low against the Euro.
The $SPX tacked on more new highs yesterday even though there was some weird trading action in some of the Nasdaq momentum stocks early in the day. At around 10:30 stocks like $YY, $YELP, $YOKU, $VIPS and others dropped almost a quick 10%. Just enough to hit your stops and shake you out, then make you look stupid as they trade higher later on i the day. Good clean fun.
$NFLX was tortured, beaten, then laughed at yesterday as it was turned into yard mulch after it took a trip to the wood chipper. Icahn sold and made a fortune. He had great things to say about the company, but it was time to take profits after making a billion percent in the name. It may get interesting again around 300, but the stock is broken and wounded for now.
The baton (for now) may be passed to potentially new momentum stocks like: $SCTY, $FSLR, $VIPS, $YY and others. there is always a new rotation somewhere. $TSLA still acts heavy for now. The $NFLX action reminded momo players everywhere that the party can end fast…..and violently when the music stops, so be careful out there.
Some bitoech names are rallying nicely again after their correction. Yesterday $BIIB made new highs. $GILD and $CELG look great too. I initiated a new position in $CLDX yesterday on the hunch that t may be near term oversold and due for a bounce.
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