Another Reason to Be Cautious on Spacey
Position: Short SPCX (VS)
The Bull Market in Complacency and Rationalization
* Increasingly market participants know less and less about value and more and more about price…
Half of the bullish cabal ignores valuation in the belief that S&P EPS will grow into an all-time high in the measurement of an assortment of traditional valuation metrics, which include cash flow-to-enterprise value, the price earnings/sales/book value ratios, return on equity, the Buffett Ratio (total market cap to GDP), the CAPE Ratio, etc.Â
The other half just cares about price momentum.
Position: Short SPY (M)
Tweet of the Day
Position: None
My Impulse to More Aggressively Short the Indices at 4 AM
When I awoke at 3:30 AM I saw S&P futures +20 handles and the Nasdaq futures +255 handles.
What caught my eye was the outsized gain in the Nasdaq — even though Mag 7 stocks were flat to slightly lower at around 4 AM — it was all due to gaps in semi and memory stocks (especially $MU, $AMD and $SNDK):Â
I shorted $SPY and $QQQ because I don’t think that outsized influence and divergence continue for a host of reasons.Â
Position: Short SPY (M), QQQ (M)
Are Options Traders Sounding a Warning Signal for Stocks?
We can talk about the Semis and the transports, but it’s the options that are giving the most worrying signal.
S&P Oscillator Remains Overbought
The S&P Short Range Oscillator remains overbought at 1.64% vs. 1.59%.
Position: Short SPY (M)Â
Early Wednesday Morning Trading (4:05 AM)
I am back adding to index shorts with S&P futures +20 handles and Nasdaq futures +260 handles:
* $SPY $752.33
* $QQQ $736.17
Position: Short SPY (M), QQQ (M)
People Are Worried About the SOX. The Transports Might Be the Bigger Worry.
The SOX are tracing out a possible double top. Or a pennant. We don’t know yet. But Transports are following oil, which is down.
Tuesday’s After-Hours Advancers and Decliners
After-Hours % Advancers
After-Hours % Decliners
Position: None
Tuesday’s Closing Market Data
Closing Volume
– NYSE volume 12% below its one-month averageÂ
– NASDAQ volume 11% above its one-month averageÂ
– VIX index: up 0.74% to 16.32
Breadth
S&P 500 Sectors
% Movers
Nasdaq 100 Heat Map
Closing S&P 500 Heat Map
Position: None