“Sell in May and go away” holds true for investors once more as heavy selling continued last week, the biggest monthly loss since February of 2009. Volume was well above average on this past months selling and with all the news overseas, investors are shaken. Why do we care about the “investors” if we are short term traders? Investors are the ones that move the market on a month to month basis, while certain day trading and high frequency firms…
In the week ahead look for these news announcements to act as potential market movers… This week is sure to shed some light on the next longer term move. If we continue to sell off, massive panic could ensue, however I do not believe this will be the case. It would make sense that we see 1125 on the S&P, at least before we see 1040 again. This would be a great opportunity to add some swing shorts and take…
These are some of the stocks we’re long and short going into this week. We will follow up in the week with some additional names to establish new positions in. Bullish: AKAM, CIT, DTV, DNDN, NEM, SNDK Bearish: DIA, GRMN, PBR
Let’s not load the boat long just yet. Grabbing a few shorts as we inch higher is a smart play as we continue to see lighter volume on the rallies. Tomorrow we should see some decent trading in the morning then a very slow afternoon session as trader’s head out early for a 3-day weekend.
Longs: ABX, GG, NEM (Same sector), AKAM, DTV, CMG, DAL, SNDK, NFLX, VCI Shorts: GRMN, LEN
Have we hit a bottom? Today’s price action sure seems like it. We opened the day at -140:1 breadth and closed at 1:1 grinding higher all day. The market is heavily extended to the downside and has held support at the 2010 lows. When we see a daily hammer candle pattern (on the SPX) as large we’ve seen today, it is common for us to gap higher the following day. If this does occur, we will be looking to add…
With a VIX near the 40s, we are expecting a lot of volatility this week. A lot of news announcements can act as catalysts, not to mention the situation with the EU. We remain delta neutral.
Many good nuggets of information can be found in this weeks daily reflection posts. This week we are expecting some sort of bounce. News announcements can be found here and include GDP on Thursday. Volatility remains high so be prepared form continued large intraday swings. We are expecting volatility to remain high through the summer. Volume remains higher on the down weeks and lighter on the up weeks.