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I think we are getting close to a sell off. I’m not sure when it will happen, but it should be soon. The market seems tired and as I said in this morning’s blog post we are regurgitating the market’s buying power, not bringing in fresh cash. These sell offs usually happen when you least expect it, so keep your stops in check and resist complacency at all costs. We may have a little steam left, maybe even 1330-1350 on the S&P, but start looking over your shoulders, because a correction could be just around the corner.
GOOG had a bad earnings report, at one point it was down over 10%, it’s down about 9% right now.
Thankfully, IBM, INTC and MSFT had decent reports and they are trading higher in the after market, so that may offset some of the GOOG damage.
No new names tonight. I took some partial profits today in RENN and ARBA and we took a stop in RRC. The drop in natural gas hit RRC and the energy sector softened up as the day progressed after a strong morning session. The dollar continues to drop, so if that can continue, commodities should do well over the very short term.
The euro continued its rally. This euro rally is strictly technical, Europe is still having issues, but the world was short the currency and when they all go to cover their shorts at the same time, rallies can last for a few weeks. This has helped the U.S. market dramatically.
We wrap up the week tomorrow and it’s also option expiration.. See you in the morning.
Please check the P&L every night to view any changes or additions.