To play fair, I want to discuss the negative divergences occurring here today, as to not act like they are being purposefully overlooked. Many of which I feel were vital last week, and inconsequential this week.
On the day, the bright spots are breadth, Yen, HYG, and risk appetite…all of which were highlighted last night.
The dark spots are the $IBB weakness, perhaps $AAPL, slow overall market movement, maybe you were thinking more enthusiasm in some momo names?
This is the shift in the market where I start talking about the market itself less and less. At this point when signals confirm, the day to day action in groups and names becomes the focus, and the market is just a bi-product. In other words, the market becomes a market of stocks, and not a stock market.
As an example, let’s take $TSLA, $GPRO and $FEYE. All three are clearly not participating in today’s move. That relative weakness should mean that more downside is coming. Mark those three names and let’s see how they do tomorrow.
As for $IBB, I think action like this is bat being set. There is notable weakness, but I am seeing roughly the same # of stocks that are up 4% or more as there are stocks down 4% or more.
As for $AAPL, it wasn’t a needed item last week when we were looking for positive divergences into strength, therefore I don’t think it as important this week. However, at the turns, we’ll want to make sure it isn’t blatantly moving in opposition to the NASDAQ.
More later,
OA
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Jeff,
Does GLUU look like we’re coming out of aversion to you?
I would invest in $GLUU. It’s on my list.
Is that a maybe?
I can fade Fly but I cannot fade OA. He’s just been on fire way too much. Will look for a spot to get back into LABU
OA….just for clarification by bait being set you thing the weakness in some Bio’s is buyable
I think so, yes. I think weakness on days like this is very buyable.
Take $LNKD and $NFLX as examples from Friday. Big market reversal, bot stayed red all day. Today, each up more than 3%.
I like to buy individual weakness in these environments.
hmm…so you prefer to take position in individual bios instead of the ETFs at this point?
Just curious because individual names for me are much tougher to get in and out of.
Thank you
Does anyone have any insight to share on OVTI? They are supposed to be bought for $29.75 / share and stock is trading nearly 10% below offer price. Chart looks good – does action imply a possible higher bid?
something missing .. if they’re trading 10% below offer then the market value them 10% below the offer .. 10% off should mean something
their trading @ your price really
AAPL got an estimate cut by Citi.
I took that price cut as a good entry point once it held 109. curious to see if other firms cut iphone estimates…
I sold a 1/3 of my LT AAPL position at 133 (how I got a top tick I don’t know since I’m never that lucky) only because I like to sell at least part of position if I catch a double. I thought I’d buy more once it gets cheaper but honestly there is nothing but market strength to make this thing go up. I buy things in my LT account when I love the product because I’m the ultimate consumer (and I like them to have a dividend) but I don’t love Apple right now. IPhone 6S is a major flop in my opinion. Force Touch? Slightly better camera?? All worthless. Get back to me at 90 with iPhone 7 hype on the way… Hopefully around March. This isn’t trading talk… LT thoughts.