MIDDAY RALLY
Markets finally bouncing as the SPX 1200 level and the crash in crude provide a good reason for the bulls to get long.
Crude down over $8 and just wondering if this is the down $15/$20 day that causes the market to blast higher;
NAZ internals have flipped to flat while the NYSE numbers are still way red at 900 more losers than winners;
Strongest sectors are biotech, banks, brokers and real estate while oils, steel, ags and metals lag.
VIX already down 4% near the 27 level and wasn't that 30 level short lived;
Up volume a bit ahead of down and TRIN at .46;
House dems planning another $50B in stimulus for middle income earners;
I would be a little careful about getting long here as there are many folks who want to short a blip- especially if we get at /near SPX 1250 - I guess still a long way away in this ugly market.
posted by DAVID at
1:04 PM
3 Comments:
Like you said, be careful getting long here, I still see more downside to come... There seems to be lots of people waiting to buy when VIX bounce above 30, lots of blog keep saying low is near, and that 1170 number is all over all the trader blog sites... so maybe why we got people jumping ahead of 1170 and bought at 1200... market that accomidating?
I'm long stocks (EWZ) and short bond (futures and TBT etf long) right now, and will stay that way unless stopped out. I agree that upside could be limited due to the extended nature of the recent declines, but for now long "should" work.
Dave, do you see yourself shorting at the 1250 level on SPX?
Yes - I anticipate shorting higher levels- Don't know if we get to 1250 area that soon- but it is definitely a tempting are.
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