The stock market was fast for a minute. Last Friday it slashed lower. It was a real horror show, with the S&P 500 succumbing to it’s 2nd worst single day performance in the last 10 years.
Then Monday opened hard gap down and was bought up all day, effectively forming the low of the week. OPEX shenanigans? Totally random? While spooky to some, that exact scenario was laid out as one of two possibilities for the week in last Sunday’s Exodus Strategy Session. Let’s review:
I. Executive Summary
Rauls bias score 1.90, STRONG BEAR*. Two possible scenarios for next week. First, price works higher to start the week. Look for a push up to about 2133 on the S&P futures before we roll over and continue lower. The second scenario is a big gap down Monday that is bought up all day, ultimately forming the low for the week.
Since the Monday low we’ve come a long way, and buying into the weekend ahead of next week’s FOMC rate decision may seem sketchy.
However, Lionsgate dropped a sequel to The Blair Witch Project on box offices today. They are coming in hot to scary movie season with a follow-up to their cult hit.
Sequals tend to work in the horror genre. Look at Saw or Final Destination. Blair Witch is admittingly a different case because the initial allure surrounded the raw nature of it and people speculating it was true (lolz).
However, if they can strike the same thunder this weekend, when everyone is jonezing for a horror flick, Lionsgate (ticker: LGF) could run on Monday, effectively maiming and slashing short sellers to bits.
Full disclosure: the writer (RAUL SANTOS) is long LGF as of Friday.