High Yield Corporate Algo Gone Wild

775px-Billionaire_Bot

I am back to cash after taking 2.7% and 5.2% losses on my shorts, wiping the slate clean into the market’s gap higher which is holding, thus far.

You can see the high yield corporate paper ETF, below, also sporting a gap up this morning.

However, this one faded off of what looked like a fat finger/algo-gone-wild trade. When you see a candle like the one below, it is tough to do much of anything–The chart is still damaged but now is clearly stop-running shorts to the upside and doing some cleaning work before the next real move.

I still think junk and high yield corporates are key parts of the fixed income market to watch going forward, related to equities.

_______________________________________________________________________

HYG

Ready to Take Some Lumps, if Need Be

With my two short bets under pressure this morning, in the small caps and semiconductors, I am prepared to cut them for about 3-4% losses this morning if there is no downside reversal into the opening gap higher, in the next thirty minutes or so.

Given the back-and-forth in the market the past few weeks, I am inclined to move back to cash and wait things out for better spots to get involved.

What are you trading this morning?

 

Latest Titanic Readings in Case of Iceberg

Titanic-sinks1

Here are some actionable short ideas on this list, especially if the market sees another day of weakness.

Courtesy of The PPT algorithm, here are some very aggressive ideas for short trades headed into Friday If you are not comfortable shorting (especially in a bull market), there is nothing wrong with taking a pass. Keep those cover-stops in place.

Nonetheless, a good chunk of readers are always looking for short ideas.

Members of The PPT can click here to view and save this “Titanic” Screen, as I named it when I created it a few years back. The screen isolates stocks vulnerable to further weakness.

Please click on image to enlarge 

________________________________________________________

2014-10-23_0038

Night Owl Open Forum

night-owl

For you night owls out there, feel free to drop me any market/trading-related topics you would like me to cover in a weekend video.

In addition, anything else about the current market, feel free to drop below.

Speak your mind, night owls.

Late Night Strategy for Thursday

FGTUqTD

Goldman Sachs has a pretty textbook bearish setup on the daily chart, below. Note the bearish engulfing candle at the 50-day moving average on Wednesday after a weak buy volume bounce over the past week.

If we are on the cusp of seeing the next leg down in a more standard correction, in lieu of the QE-era rallies to new highs off shallow dips, then I suspect Goldman will prove to be a quality short into the end of this week.

I like it as a short on any further weakness, which would likely pressure the financials as a whole.

Drop me your top tickers overnight.

____________________________________________________________

GS

Stock #Market Recap 10/22/14 {Video}

If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.

In addition, please see the top of this video for details about attending our iBC Investors Conference this November.

Enjoy tonight’s video, and enjoy your evening. 

Direct Vimeo Link Click Here

High Yield Corporate Algo Gone Wild

775px-Billionaire_Bot

I am back to cash after taking 2.7% and 5.2% losses on my shorts, wiping the slate clean into the market’s gap higher which is holding, thus far.

You can see the high yield corporate paper ETF, below, also sporting a gap up this morning.

However, this one faded off of what looked like a fat finger/algo-gone-wild trade. When you see a candle like the one below, it is tough to do much of anything–The chart is still damaged but now is clearly stop-running shorts to the upside and doing some cleaning work before the next real move.

I still think junk and high yield corporates are key parts of the fixed income market to watch going forward, related to equities.

_______________________________________________________________________

HYG

Ready to Take Some Lumps, if Need Be

With my two short bets under pressure this morning, in the small caps and semiconductors, I am prepared to cut them for about 3-4% losses this morning if there is no downside reversal into the opening gap higher, in the next thirty minutes or so.

Given the back-and-forth in the market the past few weeks, I am inclined to move back to cash and wait things out for better spots to get involved.

What are you trading this morning?

 

Latest Titanic Readings in Case of Iceberg

Titanic-sinks1

Here are some actionable short ideas on this list, especially if the market sees another day of weakness.

Courtesy of The PPT algorithm, here are some very aggressive ideas for short trades headed into Friday If you are not comfortable shorting (especially in a bull market), there is nothing wrong with taking a pass. Keep those cover-stops in place.

Nonetheless, a good chunk of readers are always looking for short ideas.

Members of The PPT can click here to view and save this “Titanic” Screen, as I named it when I created it a few years back. The screen isolates stocks vulnerable to further weakness.

Please click on image to enlarge 

________________________________________________________

2014-10-23_0038

Night Owl Open Forum

night-owl

For you night owls out there, feel free to drop me any market/trading-related topics you would like me to cover in a weekend video.

In addition, anything else about the current market, feel free to drop below.

Speak your mind, night owls.

Late Night Strategy for Thursday

FGTUqTD

Goldman Sachs has a pretty textbook bearish setup on the daily chart, below. Note the bearish engulfing candle at the 50-day moving average on Wednesday after a weak buy volume bounce over the past week.

If we are on the cusp of seeing the next leg down in a more standard correction, in lieu of the QE-era rallies to new highs off shallow dips, then I suspect Goldman will prove to be a quality short into the end of this week.

I like it as a short on any further weakness, which would likely pressure the financials as a whole.

Drop me your top tickers overnight.

____________________________________________________________

GS

Stock #Market Recap 10/22/14 {Video}

If you enjoy my blog posts and videos, then I would encourage you to please click on this 12631 hyperlink for more details about joining our great team of traders at a very reasonable price. 12631 is a trading service which @RaginCajun and I direct here at iBankCoin.

In addition, please see the top of this video for details about attending our iBC Investors Conference this November.

Enjoy tonight’s video, and enjoy your evening. 

Direct Vimeo Link Click Here

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