You Wasted Eight Aprons on This Market Action

The market has basically been a sloppy mess since the FOMC yesterday afternoon.

While bulls are resilient, once again, the price action in leading stocks is not overly-promising. As an example, I do not see the likes of FB GOOG NFLX PCLN TSLA YELP pushing anywhere close to new highs with energy. However, the rotation thesis for financials is probably the most colorable argument bulls are making here.

I am short the biotechs again, as a whole, playing for the steady heavy selling in the sector since late-last year to finally push down bulls, if only for a sharp correction.

On the long side, keep an eye on the heavily-shorted BDBD again for a squeeze higher.

Pandora is breaking down from the bear flag I have written about previously.

Overall, I am letting the market decide which way it truly wants to go next before getting aggressive.

The silver ETF back under its $19.70 primary breakout level has me staying flat the metals and miners here, essentially in hands-off mode.

While it is true that the precious metals miners are flipping green today, the silver weakness has been an issue for a while now and I am going to respect that. At a minimum, the silver weakness is waving a caution flag.

Elsewhere, WLT is still a disappointment in the coals, CMG is still a monster, and BAC and the banks are still catching a nice post-FOMC bid.

What are you trading this morning?

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To update the analysis below, if TLT can crack under $107 I would consider the bond bear thesis very much in play again, despite the recent rally. Wednesday’s FOMC reaction was a start.

The following is just a small excerpt from my latest Weekly Strategy Session (please click on that hyperlink for details about trying it out). which I published for members and 12631 subscribers this past Sunday. 

And the bond short thesis is under scrutiny, as bond bulls exude their will once again.
Still, the 10-year yield monthly chart has not yet broke support–Bond bears have to make their stand soon.

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After Wednesday’s bond market action, it is worth revisiting Bill Fleckenstein’s thesis, seen in the video above from a few months back.

What say you?

Speak your mind, night owls.

UPS is a short idea on weakness below $96, coinciding with the declining 50-day moving average and sloppy channel on the daily chart, below. Also keep an eye on AXP for a short.

And on the long side, watch HAIN SKUL for strength over Wednesday’s highs.

Drop me your top tickers overnight.

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Enjoy tonight’s video, and enjoy your evening. 

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