Bounces are still being sold quite aggressively, as the RSI and NYMO readings have yet to point to a deeply oversold market where buying into this mess is likely justified for more than a very quick, intraday flip.
Banks like Goldman Sachs and Morgan Stanley are not doing themselves, or bulls, any favors with their weak price action. And biotechs and small caps continue to slide.
In these situations, even though 2013 conditioned many market players to buy each slight dip, it is worth stepping back and considering which scenario may very well cause the most pain to the most traders at this point. Perhaps a straight-line down move to the 200-day moving average on some of the major indices would do the trick.
However, the 1840 line in the sand on the S&P 500 Index appears to be the battle du jour for bulls to win. I am watching this level throughout the session, as well as strong holdouts like Intel which have traded remarkably well of late.
What are you trading this morning?
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Longs; BIS, CORN, JO, AMBA
Short; GM
Chess, if the definition of rape is ‘randomly burning ones food without reason’, I actually enjoyed the company of a Rape Stove for about two years, in my younger years.
As for stocks? One of my few friends that hasn’t Buffalo Billed me this spring: RMBS – until he does, “I’m a Ram” https://www.youtube.com/watch?v=gFtA9VWuwg0