Nasdaq: -35.56... S&P: -14.43…
Today started off OK. The market opened up a bit and then we started to fail miserably. The 2115 level that I highlighted in yesterday’s video got violated today and things were just pretty sloppy all around.
The polls are starting to have an effect on things too. The widely followed ABC poll that had Clinton +8 just a week ago, now has Trump +1 and some of the battleground states are really tightening up. It’s still a coin flip, but the market was baking in a Hillary win, so with Trump pulling closer, the market got nervous.
The markets don’t like change and Hillary is considered more of a “known” entity than Trump, so as the polling worm turns, so is the market. This is fun to watch and it really is great theater if you like this kind of stuff.
I told folks to watch the peso about a month go, it really is an interesting way to watch the election. When Hillary had a commanding lead the Peso was rallying against the greenback, now as Trump gets traction the peso is dive bombing against the dollar. NAFTA, great walls and immigration are all on the table with Trump, not Clinton, so its a fascinating dynamic to watch right now.
On the Short Side
We started a new month today and we had a several shorts that carried over from October. As you know, I gave you a bunch of short ideas to watch in yesterdays video and mostly all of them rolled over some more today, some so much so that I couldn’t chase them. I did however add four new short to the P&L.
This isn’t necessarily my commentary on the direction of this market, I do think however that some individual stocks look cooked regardless of the market.
As a result I added DB which was rejected right at a 7 month downtrend
STX – bear flag breaking, maybe 30-31 target
BGS- big topping pattern that’s breaking, possible gap fill t the 34 area
THRM-breaking lateral support, I have a target as low as 23 on this one.