On the day timeframe, we saw action that suggests the sellers gained control of the tape. It started with the open where sellers printed a wick on the top end of our NASDAQ profile. Looking at the bar chart the print has a smack of euphoria. From there came several subtle warnings as the tape went mostly flat. It began to feel like sellers would fail [again] to roll the tape over. Every time inventory became too short in the futures, a rapid squeeze would develop. However, they never made new swing highs. Then after 3pm the sell flow came back in and closed us out near the lows.
It important to keep in mind we are still in an uptrend and tomorrow has a hearty POMO on tap. However, should that liquidity be absorbed and price continue lower, we may have a swing high in place.
Early on I sold out of AAPL, Z, and BZH. I did not like how the puzzle pieces representing housing looked during my weekend analysis so I cut. AAPL had just made its biggest four day move in the last six months and I wanted more cash. I scaled off a small piece of my GOGO, sub thirty, regretfully, as 30 was my target on the day. I sold NUGT for obvious reasons (it was getting pulverized) and I sold an old holding in O, because it looked weak.
My only buy today was of WBMD. I chased a bit, thus I left room to add if need be.
The net of my actions raised cash to 21% after being 100% long into the weekend. Call it what you will, I want more cash on hand into what may be a challenging month.
CREE started printing an inverse head-and-shoulders reversal pattern while its small cap counterpart RVLT struggled. OESX took a minor beating too but may begin consolidating which would entice me to finally get long the name. LEDS looks to have printed a bearish engulfing candle on the daily chart. Overall, the LED industry is still a mixed /weak basket of securities.
TSLA is getting a little dangerous looking and needs to find some buy flow soon. It looks to my eye to be setting up for another leg lower. Elon has a missile launch scheduled for tomorrow. Perhaps his motor stock will launch also. TM is promising to bring fuel cell tech to Japan by 2015 and Europe and USA by 2016. That means Elon has 2 full years to continue disrupting old auto. Tick tock Elon, keep making moves.
Shippers, you know them, you love them, and you hate them. This trade has been setting up so slow. It wants to lull you into a trance so you bail out of boredom then SPLASH, swing highs. It is still tough to get excited when I view my big shipped position.
Social media continues looking weak and there were reports of heavy put volume in crowd favorite FB. Overall sentiment continues to be bullish and that never bodes well for higher asset prices. For now, YELP continues to find buyers at the 99ema. If TRIP confirms lower tomorrow it sprung a nasty bull trap on speculators.
I would like to see some panic tomorrow, for olde time’s sake. Wouldn’t it be nice to get our one or two mandatory days of terror out of the way early? That way we can focus on gluttonous buying for the remainder of the year.
The chicken trade does not appear complete. I may need to reenter for the great ARISE.
The sellers have won the day. Two weeks back they won Monday-Wednesday only to get BTC’ed Thursday and Friday. Take todays win by the sellers in context.