The Wrap 5/3/11

{+++} I think it was last month that things started off choppy and with some stops. There is obviously some excess being shaken out in certain sectors and it is frustrating and can be confusing.

Crude came down today, but oil (XLE) and oil service (OIH) came down more. Steel (SLX) and coal (KOL) were weak and the material sector (XLB) that I mentioned may have double topped on the chatroom yesterday, came in pretty hard. the Russel 2000 broke , but closed just above its 20 day moving average, so for now, that looks like support. Financials are firm and that sector could literally go either way in a hurry. We have FAZ, but I am watching it closely.

Some leadership type names like NFLX, GOOG, BIDU, OPEN (down 8% in after market) CMG all are showing cracks. I like AAPL at my price, but lately it just hasn’t been trading well. AMZN still looks good , but we took a quick two day profit.

We sold half of our LOCM yesterday, but the other half got taken to the woodshed today. I marked the exit where I sold mine as it gapped down through the stop.

For those of you who took the FSLR short (took stones) you were rewarded, as it had poor guidance on earnings and last I checked it was down about 8.5% in after market trading). As you know I took half of it off late today so we wouldn’t be too exposed if it went the other way on us.

So far, every shallow correction has been a buy the dip scenario with this market, so we will have to see if the bulls just took a day off or if it is the start of a correction. Will it be a sell in May and go away deal or not? Only time will tell.

The market dished out paper cuts today, but they still sting. I hope you made it out all right.

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