I hope you've all been navigating this market well, even if that means sitting on the sidelines. Remember, cash *is* a position.Dennis Gartman made some interesting comments on CNBC this morning on the current market environment:
Go back to any texbook to look at classic manias, panics & crashes -- that's what we have here this morning. It's just madness for all intents and purposes... It's unlike anything that any of us have ever seen before...
THat last part is key. This isn't and hasn't been normal action. If it doesn't fit your trading plan it's perfectly fine to preserve your capital for more normal market conditions.
On Today's Calendar:
- 10:00 -- Existing Home Sales
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.
Potential day trades:
(From Briefing.com)
Gapping Down
With equity futures limit down this morning (S&P futures -60, Dow futures -550), there are a very large number of stocks gapping down... In reaction to disappointing earnings/guidance: TROW -17.5%, NTGR -14.6% (also downgraded to Sell at Deutsche), SNV -12.2%, RIO -11.4%, RMBS -10.3%, BUCY -9.8%, IR -9.0%, MSFT -7.2%, CAKE -7.1% (also downgraded to Hold at Wedbush Morgan), WDC -6.5%, WFR -6.1%, DDR -5.9%, WOOF -5.6%, POWI -5.4%, BNI -4.3%, MCHP -4.0%, JNPR -3.8%... Financial stocks trading lower: AIG -22.9% (AIG again taps U.S. loan facility - WSJ), ABK -22.2%, MBI -18.0%, HBC -17.4%, ING -16.1%, BCS -16.0% (downgraded to Neutral at UBS), AEG -13.0%, NCC -12.7%, GS -11.6%, STD -11.5% (still checking), MS -11.2%, BAC -10.7%, DB -10.0%, C -9.8%, WFC -7.4%, ABB -5.8%... Energy related stocks showing weakness with crude lower despite OPEC cut: JRCC -22.5%, NOV -18.6% (downgraded to Neutral at JPMorgan), PBR -15.5%, CNX -14.5%, ACI -14.2%, BTU -14.0%, RIG -13.7%, BP -13.6%, RDS.A -12.3%, MEE -12.0%, TOT -11.8%, XTO -11.6%, ICO -11.1%, E -10.7%, SLB -10.5%, XOM -8.2%... Metals/mining names showing weakness with lower spot prices: ACH -14.1%, FCX -12.4%, MT -11.4%, NEM -10.9%, RTP -10.8%, AAUK -9.2%, AUY -9.1%, BHP -8.8%, AU -8.7%, AEM -8.4%, AA -7.9%, GFI -4.8%... Solar names trading sharply lower: CSUN -22.7%, ESLR -21.1%, CSIQ -17.4%, YGE -16.9%, FSLR -16.6%, LDK -15.2%, JASO -15.0%, SPWRA -13.8%, STP -11.1%, EMKR -10.9%... Agriculture related names showing weakness: MOS -16.8%, BG -15.8%, AGU -14.2%, POT -13.9%, MON -9.2%, SYT -3.5%... Select tech related names trading lower following MSFT results: BIDU -17.3%, NVDA -12.1%, SNDK -11.4%, YHOO -9.8%, RIMM -9.1%, HPQ -8.9%, GOOG -7.8%, DELL -7.7%, AAPL -7.4%, AMZN -6.1%, JAVA -5.3%... Other news: GE -6.4% (plans to use Fed commercial paper facility - Bloomberg)... Analyst comments: LVLT -21.6% (downgraded to Neutral at Merrill), ALU -13.9% (downgraded to Underperform at Merrill), FTE -11.6% (downgraded to Neutral at Credit Suisse), VRGY -3.3% (downgraded to Underperform at Oppenheimer).
Gapping Up
With futures sharply lower, few names appear to be gapping higher in premarket trading... In reaction to strong earnings/guidance: CLS +15.0% (upgraded to Sector Perform at CIBC), HNSN +10.6% ELX +6.9% (light volume), DDUP +4.5% (light volume), MPWR +1.6% HITT +1.4% SYNA +1.0%
Disclaimer & How I use this list
Hi Mike
Previously you posted 'Lookout below' when future drop so hard pre-market, but in reality, today the index 'only' drop 3.5%. What your opinion on this? still bearish or what?
Until this market starts making higher highs after a pullback you have to be short term bearish. If you're trying to pick the bottom, or just catch a relief rally you're walking a tight rope (not that it can't be done). The system is seriously broken and it is anyone's guess what it will take to fix it. Good luck!