Tech Leads S&P and Nasdaq to Best Days Since Early August
Tech’s continued rebound along with falling oil prices and Treasury yields drove a powerful rally to start the week.
Magnificent Seven Hits All-Time High but it’s Not What it Seems
It was an upbeat day driven by poor positioning and too much negativity.
Medium-Sized Shorts
I have moved to medium-sized short the indices:
* $SPY $774.19
* $QQQ $740.81
Position: Short SPY (M), QQQ (M)
Things I Did Today
Here are today’s things:
* I shorted the indices: $SPY at $767.15 and $QQQ at $729.97.
* I added to my $GRNY short at $28.33.
* I added to $MSOS at $4.94 and $GTBIF at $7.33 longs.
Position: Long MSOS common (VL) and calls (S), GTBIF (S); Short SPY (S), QQQ (S), GRNY (M)
Adding to 3 Shorts
I just added to my $GRNY short at $28.45.
I also added to my index shorts:
* $SPY $772.43
* $QQQ $738.78
Position: Short GRNY (M), SPY (S), QQQ (S)
Not Broadening
* As previously noted (repeatedly by myself and The Divine Ms M), the market is narrowing — with the Russell not crowing and the equal weighted S&P Index (RSP) rolling over
* Given the narrowing and the valuation model discussion in my upcoming opener, I am planning to expand my short book on the recent rally and strength in the indices
* It feels like deja vu all over again…
Here was Friday’s report card:
$SPY +0.30%
$QQQ +0.81%
$IWM -0.48%
$RSP -0.40%
Though S&P futures rose by 21 handles and Nasdaq futures increased by +238 handles on Friday, market breadth continues to have a foul odor as seen by these tweets delivered by Jason Goepfert:
Shades of the Dot-Com Era
And the correlation between tech stocks and the rest of the market is the lowest in 22 years:
It feels like deja vu all over again.
Position: Short SPY (S), QQQ (S)
Early Monday Morning Index Shorts
* At 615 AM…
I shorted the following:
* $SPY $766.81
* $QQQ $728.43
Position: Short SPY (VS), QQQ (VS)
Tech Leads In A Narrow Market
Tech stocks did the heavy lifting as rising yields and the first factory-output drop of the year keep the rest of the market on its heels
Back Shorting the Indices
“Just one more thing.”
– Lt Columbo
S&P futures are +20 handles and Nasdaq futures are + 240 handles.
On the strength of the runoff and option expiration I am back shorting the indices:
* $SPY $762.97
* $QQQ $722.85
Position: Short SPY (VS), QQQ (VS)
Things I Did Today
Here are today’s things:
* I covered the balance of my short indices:
$SPY $760
$QQQ $717.65
* I added to $MSOS common at $4.81 and calls, and to Trulieve ($TRLV) at $10.85 and Green Thumb (GTBIF) at $7.29.
* I added small to $PEP at $130.09.
* I added to $GRNY short at $27.71
Position: Long MSOS common (VL) and calls (M), TRLV (VS), GTBIF (S), PEP (VS); Short GRNY (M)