We are seeing a bit of an afternoon bounce in the tape, as I write this.
However, complacency still seems to be elevated with a weak VIX. In addition, the bounces themselves are not very inspiring, particularly in the biotech sector off the lows. Plenty of traders seem to be eager to bottom-fish the biotechs, too.
You know I sold out of my BIS (ultra-short) long this morning. But given this backdrop I am stalking biotech bounces to reinitiate shorts. Of course, the IBB is below its lower daily Bollinger Band, a sign of short-term oversold conditions.
Keep in mind, though, that if this is a true change in trend then oversold will remain oversold for a while–That will be one of the “tells” if this is a buyable dip or not.
Drop me your top ideas for the final ninety minutes.
Dipping my toe in after a prolonged absence. I was in BIS at $15 and sold all the up and got rid of final piece at $18.01. I actually wanted to hold this up into the low $20’s, but after this 2-day run, who isn’t a seller?!
Chess, take a look at WLP. They got 100 upgrades today after an impressive investor day on Friday, but the stock shot up early and retreated. If it follows through to the downside, could be some short-term opportunities to the mid/low 90’s.
All hail the mighty CORN god!