The Wrap 9/20/11

Our S&P Wedge
Our S&P Wedge


Our now famous wedgy is posted above. As I have been saying, the next level of resistance that could cause a problem was the 50 day simple moving average. That is the green line above within the wedge.. As you can see, it hit that level today (missed by about 3 handles) and backed off.

The S&P gave up about 18 handles from the high today and that’s not healthy action by any stretch. AAPL witch exploded out of the gate this morning managed to give back about 10 points from its high, to where it closed. AMZN gave up about 7 from today’s highs. As I noted in Sunday’s video, steel (SLX), coal (KOL), materials (XLB)  and metals/mining (XME) have not been acting well in this rally. Today they continued to act poorly and I added BTU and CNX as swing shorts to the P&L. I also added FAZ as a long. To me the financials still look weak and could break if the market does.

I also took profits on IBM, sold 1/4 position in AAPL ( +30 points in a week) covered 1/2 of our CF short I took a small loss on the balance of ULTA. I’m not crazy about owning high beta 4 letter stocks like ULTA when the market is rolling over. We can revisit if things settle down over the next few days.

Tomorrow Bernanke speaks. Maybe he has a silver bullet, maybe he doesn’t. We will know shortly after 2PM tomorrow.

Please check the P&L as I have made some changes to reflect today’s moves. I have also added a few short ideas. Have a great night.


P.S. Bonus short ideas for your radar:  MDP, NOV



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