Wednesday Market Wrap

{+++} It was another brutal day today as stocks sold off for a lot of the same reasons, China fears and emerging markets. The Fed tapered. but did anyone think they wouldn’t?  The SPX is down about 75 handles from the highs of just a week or so ago. Corrections happen fast around here, but they have also proven to be short lived if you’ve noticed. They last a few days or a week then the dip buyers step up. I was tempted to get very long at the close, but avoided the urge. Hopefully not at my peril.

Facebook FB reported a phenomenal number after the close and is rallying very strongly. Twitter TWTR, in sympathy, also is going higher. As a result, Nasdaq futures are higher and lets not forget that GOOG reports tomorrow after the close.

The Nikkei NKY is currently down about 3% and the S&P futures are up about 3 handles right now.

The SPX held the 1770 level and missed holding the 1775 level by less than a buck. The market is in a place right now where it will rally really hard or just break down hard. Boeing BA was down big today off a weak earnings report and poor guidance. Keep in mind that about 30% of the Dow Jones decline today was due to BA alone.

Negativity has grown over the last week, so that makes me more bullish. I added CYTR to the P&L today. I like the pattern and as long as biotech can stay glued together, I think it will be good for a buck.

AAPL looks horrible again, but is short term oversold. I think if AAPL takes out today’s low with volume there could be a quick shot down to the 380-384 level which is also the 200 day moving average. We shall see.

See you in the morning.

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