A Soft Bounce

The indexes bounced modestly today after recent pressure. U.S. crude oil fell 1.1% to $36.76 a barrel and if this continues there will be catastrophic consequences for energy companies, especially small and mid sized ones.

The S&P closed green but it got very weak at about 3PM today and index gave back about 15 points. The Nasdaq the Russell and DOW all gave back gains in  the last hour. Not bullish from my perch.

It feels like the market is just left with day traders as we approach year end as rallies get sold quickly and people just take their profits.

One small group that is running is guns and ammo. RGR and SWHC have been popping and today Obama announced that he wants to issue and executive order to limit gun sales.



I’m starting to see some REIT”s get really pulverized, so that should bode well for our IYR short.  Also, there were also near record outflows last week in the junk bond space, so that should bode well for the HYG short. Shorts can take some times, so stay patient.

See you tomorrow.


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