July 23, 2018

Drop to set-up end-of-year rally?

Index & Sector performance 12/30/14 The Market: Without any catalysts, the market drifted slightly lower today but we would be very careful on the short side as this could just be a set-up to finish out the week strong.  In addition, we would be looking at a gap down tomorrow as a potential short term trading opportunity on the long side. While all sectors finished lower, Utilities (XLU) led the way closing down over 2%. Tomorrow is the biggest data day of the week with Unemployment Claims the headline.   Analyst Comments:

Yellen to the rescue

Index & Sector performance 12/17/14 The Market: Fueled by continued caution from the Fed in raising rates and a rebound in Oil prices, the broad indices roared higher with the Russell 2000 (IWM) leading the charge finishing up over 3%. We noted in Monday’s comments that a gap lower Tuesday could be a great trading opportunity.  For anyone that did not just day trade Tuesday’s gap down and are still holding, we would be using relatively tight stops to manage the position as there is still some concern lower levels could be seen before this decline is over.    …

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…