{+++} The market let some air out today again. As I said last night, the market hasn’t really done a whole lot since last Thursday’s sell off. Rather it has consolidated sideways with some good movement in individual stocks.
Today’s action in my opinion was a combination of a few things, and it is not a reason to fold the tent.
Rockets and Missiles– As I said today in the trading room, the world right now looks like a video game. Missiles and rockets are being fired from Russia into the Ukraine and from Gaza to Israel and back to Gaza.
New Highs– With the exception of the Russell 2000, the other indices for the most part are at new highs. Coupled with the fog of war, stocks pull back via profit taking.
Amazon– It didn’t help that Amazon’s earnings failed on all levels last night. The stock dropped 35 points today and that was a drag.
Visa– Visa is now in the DOW 30 and was down almost 5% today, so that was a drag on things.
If you are contrarian, take a look at this.
Futures speculative traders are the most short on the Russell 2000 in 30 months. I kind of love this from a bullish perspective as the “crowd” is usually wrong with these types of bets. Dumb money is dumb for a reason.. If they are wrong, expect a major short squeeze next week.
I’ll see you over the weekend.