Sloppy At the Highs

Carl Icahn came out with some bearish market comments yesterday. He basically said stocks are way overvalued and have been held up with smoke and mirrors due to smart cost cutting by corporations. I really don’t disagree with a  word he said, but there are forces in play that transcend this truth. In two words, it’s global easing. The fact is that the biggest buyers of stock the last five years are corporations themselves.  The public just watches. Can the market correct? Of course it can. Will it crash? Not Yet.

Names like $TSLA, $YELP, $LNKD, $NFLX and$ SCTY got taken to the woodshed. There were many others, and it seemed they took profits in some of the main momentum stocks for the second time in as many weeks.  There was some solid profit taking in the oil and gas sector too ( $CRZ, $XEC, $CXO and $WLL) and other areas, so it wasn’t just sector specific. Hey, at all time highs, people take profits.

On a pullback, I see support at $SPX 1760-1775 should offer initial support.

It looks like $JPM will pay the piper and that drama will come to a close.

Dropbox is seeking an $8B valuation in new funding.

European car sales rose for the second straight month due to a surge in Spain $EWP

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Joe Donohue

Joe is a full time trader with 25 years experience. He is a senior contributor and investor in Stocktwits and has been seen on CNN Money and quoted in Marketwatch, Forbes, Reuters, NY Times and Wall Street Journal.