Tuesday Market Wrap- 2 New Stocks

{+++}  For the day the SPX/DOW were +0.20%, and the NDX/NAZ were +0.85%. Bonds gained 5 ticks, Crude rallied $1.85, Gold rose $12, and the USD was lower.

Short term support remains at the 1841 and 1828 levels.

Today’s “rally” was about as bad a recovery day as I have seen in a while. Yes there were a few stocks that had nice pops, but the indexes didn’t do much, especially after the pounding they have taken.

It will be extremely important to see if the bulls can string two positive days together. Everyone seems very bearish, and yes, the charts do look lower to me.

The Russell (IWM) looks like it may want to go down an test the 108-109 level.

The Nasdaq (QQQ) looks like it could go down and test the 82-83 level.

Many hedge funds that have been playing momentum are unwinding at big losses.

Andor Capital Management LLC, once one of the world’s biggest technology-focused hedge funds, plunged 18% last month. The $15 billion Discovery Capital Management LLC lost 9.3% in its flagship fund last month.

The $9 billion Coatue Management LLC, started by Philippe Laffont, a veteran of Julian Robertson’s Tiger Management, also was hurt by the reversal in technology stocks. Coatue’s flagship fund lost 8.7% in March and is down 7.4%

I mention this because it is important to note that these are billion dollar funds that usually outperform and are very good at what they do.  There is probably more stock for sale by these investors, so there could be some more pain ahead.

With all the death and dying out there, I actually have two longs tonight. Stocks still go up, and it will be all about individual stock selection for the rest of the year. The “easy money” days are over, at least for now. Lets not forget the midterm elections in November. Watch Washington continue to make a mess of things. It won’t be easy.

Semiconductor stocks are showing relative strength at least for now. NVDA is one of the few stocks I have been holding through this mess the last couple of weeks and it shows good relative strength. Buy it if it breaks 19.25


LJPC  OK, sit down………….. Yes its a biotech. Here’s why. The stock is down about 80% from the high that it put it on March 11. It put in almost a perfect bullish hammer yesterday (technical wango dango).  It is also banging back up against its downtrend line. Stop at 9.40 buy at 11.30-11.80 level.


See you in the morning.



Previous Post
I Long For The Day…
Next Post
End Of Days

Recent Articles