Dow: -97.31…
Nasdaq: +8.39… S&P: -8.10…
I like certain sectors and stocks but I’m lying if I told you I love the market here.
It was another chop day and although we started really strong we ended up closing at or near the lows. Not great action and market breadth was not good again.
I don’t know about you, but my P&L looks good until the close and it gets hit. I don’t know if we are seeing stealth profit-taking, selling intraday strength or what, but we are in chopville here.
It was another choppy day plagued by headlines around Covid. I fear this won’t stop anytime soon meaning trading is going to be hard as gains evaporate quickly in both directions.
Nasdaq looks best right now, Dow and SPX not so much in terms of internals.
Today San Francisco announced mandatory masks indoors again, and Costco, Walmart, Target, and Apple stores announced indoor masks again. Not sure this means another shutdown is coming, but these headlines make people hit bids and sit on the sidelines.
The bottom line, the re-opening stocks are getting crushed again. See airlines, hotels, Vegas, and others. Incessant covid headlines arent helping things.
The Russell gets hurt the worst when covid headlines are on the front page and gave up all its gains after being strong most of the day, now trading back below the 21day ma. Small caps have gone nowhere since Jan.
So there you have it, choppy, sloppy, tired summer doldrum trading.
For most of the day the market was up, but so were the VIX and the VXN (Nasdaq VIX). That’s odd.
I added some names today, not loving the market, but I like these charts. MARA, SOFI, and TLIS.
Crypto still looks good. ETHE, GBTC, MARA, and RIOT look to be turning. The worm does turn.
See you in the morning.
P&L here