Wednesday Market Wrap

{+++} I have video tech issues tonight, if I get it fixed I will pop one out later.  In the meantime I will go with the old fashioned text.  The market caught a muted bounce today. It is oversold and the Yellen introduction got a few hedgies to buy things, but nothing real by any stretch.

So far earnings  have been lousy. YUM was lousy and RT reported  bad number after the close. Restaurant stocks are rough right now which tells you the consumer is pulling back. CTXS reported a bad number (down 8 in after market trading), and that may effect CRM and VMW tomorrow. Earnings always have a ripple effect on other companies in the same sector.

The Dow Jones landed on the 200 day moving average today and caught a minor bounce. This was the leading loser on the way down, so I wonder if this will be a leader on the way up. Was this the Dow’s bottom today?


As far as the SPX goes, it is still sloppy and everyone is looking at the 1620 level for support.


Bottom line, everything looks pretty ugly right now with few exceptions. The bears are having a little fun now, but the bulls will win the day. I never made a guarantee in the history of this site, but they will fix the debt ceiling and at some point very soon, a rally will resume through the end of year.

The problem with being bullish here is that  we all know a resolution will take place, BUT do you stay long through the pain or cut back to a big cash position? You need exposure, because they won’t ring a bell at the bottom, and when it gets fixed the market rallies hard. If you don’t have long exposure you end up chasing the gap. In the meantime, if you are holding longs, you bleed a little or a lot every day. I’ve trimmed longs and taken stops the last week and I’m still getting a hit. Its like a slow motion train wreck.

Earnings are always the main focus at this time and its  taken a back seat to the  Washington madness  Everything is ass backwards right now, but it will get fixed. I think it gets fixed over the next week five to seven trading days and we rip hard.

I have a long list of ideas that I will be putting out to you guys tomorrow or over the weekend.. In the meantime hang tight.

I’m looking at starter positions in SSO and DDM, some way oversold biotechs and others. I had a pretty tight stop on CPRX and it stopped today. If you held on, it rebounded, so I would hold for now using the original;stop are or a little lower. I will probably revisit soon. With biotech you have to be careful, especially with the small priced ones.

Today they finally paid death gratuities to those killed in action last week.  This was a huge issue.  PBS though, got a 440 million grant though without a hitch.   What is wrong wit these people?

Catch you tomorrow. Get in the trading room  if you can as things could heat up soon.




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