December 16, 2018

Watch out for traps

Index & Sector performance 12/9/14

The Market:

The S&P 500 found itself down over 20 points within the first hour plus of trading  as traders pointed to concerns over China and Greece.  Throughout the early drop the Russell 2000 (IWM) remained strong down only a fraction of the other indices and then was the first to turn positive on the day.  The IWM’s resilience continued throughout the remainder of the trading session and finished the clear leader.

Today’s action certainly feels like another Bear trap where the market looks as though it is about to start a major prolonged slide and then sharply reverses leaving those short heading for the hills.  We are very interested in what happens overnight as that may be where the true trap occurs.  If we are indeed heading higher then look for the rally to continue possibly with a strong gap up tomorrow or even flat consolidation action which breakout out in early trading but if this is a mini Bear trap we would see the index press back lower overnight catching those who thought the coast was clear.

 

Economic Calendar week of 12/9/14

 

Reporting EPS 12/10/14 Pre-Market:

Companies reporting EPS 12/10/14 pre-market


Analyst Comments:

Upgrades 12/9/14

Downgrades 12/9/14

Initiations 12/9/14

Price Target Changes 12/9/14

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