Coming off a really nice Friday you’d want either a stable open today or a minor pullback. See the NASDAQ down 200 sucks; but let me remind you that the $IWM is up and most stocks are still up. Either way, this is not exactly constructive pin action; but it does have some redeeming qualities.
We have a sharply higher commodity sector and financials are solid. The weakness is focused in the semis and retail. The move in the $SMH especially sucks because all of the gains achieved on Friday have been erased. But at $242, we are well off the lows of $211 spotted two weeks ago. In other words, don’t jump out of your windows just yet; there might be hope shimmering in the not too distant future.
Speaking of which, September is typically the WORST month for stocks and you might be thinking ‘maybe not this year Fly’ and perhaps that’s true. But the NASDAQ is UP for August and the performance for September, in recent years, has been nothing short of catastrophe.
Junior at the trading turret is going to be kicked off the desk soon and in his place a coked up PM without an iota of decorum and feel for the tape. He is going to sell this market the fuck lower and panic at the first sight of weakness.
Even still, short term I am constructively bullish and will give this tape the benefit of the doubt, since it’s the least I can do. I don’t want to be to hurried or rash and prefer to see how things develop today before setting assumptions.
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