With futures pointing towards a continuation of the bounce off last week’s lows, keep an eye on FRGI as a long idea this week. The restaurant stock has outperformed on a relative basis, and is a strong chart in its own right (tight daily chart, below).
Should the market bounce roll back over, I am targeting the biotechs on the short side via BIS.
Drop me your top tickers overnight.
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I caught Kill the Messenger (2014) yesterday, the new release starring Jeremy Renner, based on the real-life story of journalist Gary Webb.
Renner’s performance makes the film worth seeing, though it may have lacked a few punched here and there. Overall, it was a solid viewing, regardless of where you fall on the political lines the film draws at times.
via imdb:
Comments »A reporter becomes the target of a vicious smear campaign that drives him to the point of suicide after he exposes the CIA’s role in arming Contra rebels in Nicaragua and importing cocaine into California.
A good Saturday educational documentary about a legend in finance.
https://www.youtube.com/watch?v=Xa93qdtai48
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I know it sounds quaint, but protecting capital in an ongoing market correction is still the name of the game.
I am taking some shots here and there, but have no interest in betting on a major market bottom anytime soon. To my eye, many a chart has been materially damaged this autumn, if not previously.
To make matters worse, leaders like GOOG NFLX (Cuban notwithstanding) continue to deteriorate, with plenty of others set to report his earnings season.
We have had a strong couple of weeks inside 12631, avoiding major drawdowns while making some sizable scores in the Ebola stocks and assorted other plays.
I am still in heavy cash, with a few plays here and there, but no shorts yet–We could easily see another push higher early next week before the bears take a real stab at pressing us down.
One thing’s for sure, in a serious correction many traders suddenly find themselves flat broke and busted. Try to avoid that fate as a top priority.
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Not much juice for the Zayo IPO today, as you can see the intraday chart, below. The firm is in the dark fiber/ bandwidth infrastructure services space. And it may very well be a sign of the times for this market to see another ho-hum IPO after BABA.
Failure for these IPO’s to catch a bid, in my view, signified diminished risk appetite and a meaningful change in market character.
The yayo is surely not as potent as it was in recent years.
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The small cap underperformane today is quite obvious and widely-discussed, though I suspect we will not know until at least early next week if it amounts to a sign that the market bounce off this week’s lows is doomed.
Something more tangible, however, would be if and when to test out a biotech short.
On the daily chart for the sector ETF, below, a retest of the broken support trendline may be just the spot to do so, using BIS as the inverse ETF.
One scenario I can see if a Monday morning gap higher in the market which then reverses the entire rally
For now, I am laying off the short side headed into the weekend.
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