New All-Time Highs for Indices Were a Bull Trap
Breadth collapses, new lows swamp new highs and the Russell 2000 sits on its 200-day average.
Another Day That the Russell Isn’t Crowing
Res ipsa loquitor:
$SPY -0.27%
$QQQ -0.31%
$RSP -0.71%
$IWM -1.32%
Fortunately I have FIN TV turned off and I don’t have to hear about the market’s broadening (not!) — and how healthy the top heavy market is.
Position: Short SPY (VS), QQQ (VS)
SPY, QQQ Moves
I moved from medium- to small-sized just now on the indexes:
*$SPY $774.44
* $QQQ $752.28
Positions: Short SPY s QQQ s
How Much Longer Can the AI Leaders Last as a Defensive Trade?
Interest rates aren’t hurting AI, and that has made the group a safe haven despite inflation concerns.
Continued Broadening Lifts S&P 500 to First Record Since August
The S&P notched its first record close since August on a continued broadening as Treasury yields remained subdued. The Nasdaq added a second straight record, but small-caps gave up an early gain.
Large Fund Degrossing Causing Market Divide
This split action has been going on for so long now that everyone is aware of it.
This Is a Good Time to Make a Stock-Picking List
As biotech is getting hit and we’re seeing ETF-driven selling, I smell opportunity for sharp traders.
Shorting the Indexes
With S&P cash +57 handles I have moved to medium sized short the indexes:
* $SPY $780.29
* $QQQ $761.35
Positions: Short SPY M QQQ M
Things I Did Yesterday
Here are Monday’s “things:”
* I reshorted the indices: $SPY at $771.82 and $QQQ at $752.71.
* I added to cannabis longs — $MSOS at $4.41, $GTBIF at $6.29 and $GLAS at $5.28.
* I reshorted $NVDA at $237.12. I took a small trading loss on much of this short at $237.49.
* I reshorted $GRNY at $28.46.
Position: Long MSOS common (VL) and calls (S), GTBIF (S), and GLAS (S); Short GRNY (S), NVDA (VS)
Oscillator Update/Premarket Trading
The S&P Short Range Oscillator remains oversold at -4.56% vs. -4.26%.
In early trading (5:05 AM) I added to my index shorts:
* $SPY $776.30
* $QQQ $757.58
Position: Short SPY (S), QQQ (S)