If I’m boring you good people then I apologize, but I gotta’ tell you, I’m just not seeing a whole lot out there right now. We are in the market to make money consistently and right now I’m reluctant to add a new name unless I really love it.
Range-bound action is likely to continue until the Federal Reserve provides more guidance on interest rates. It could have been worse today as the Shanghai Composite Index tumbled 6.2%, ending just 240 points above its recent trough on July 8. So maybe China fears (like Greece) are starting to dissipate.
Want to know what my dream scenario would be? Mr. Market doesn’t care what I want, but I’ll tell you anyway. I would like them to knock the snot out of this market for a couple of weeks, THEN Janet “Aunt Bea” Yellen passes on a rate increase in September. The short squeeze would be epic and we would be able to pack it in for the year.
This scenario is very possible and it is one of a few things that could happen. One can fantasize. Unfortunately I don’t get paid to fantasize, so we have to play it smart and let things settle out here.
I added FTI as a a new short today.
I am also adding a new long idea tonight.
Buy DVAX at the 31.10 level
See you in the morning.