Hmmm market has been wacky based on oil. Oil goes down market rallies and vice versa. We came out with weak GDP that also included a negative price deflator that threw the market for a loop. We are still trading in a trading range but the bias is negative. The only real movers today are some earnings plays such as KOMG and SBUX. Also, SDRX broke out of a trading range but, with such an ugly market, it is difficult to take long positions on these breaks. The only relief I see from this, “stagflation” fear, is for oil to drop aggressively thus providing some relief to the shell shocked consumer. That should provide a market floor then, of course, the naysayers would start complaining about such a drop as being “too” simulative. You are dammed if you do, or dammed if you don’t.
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As far as groups go, only the real breakdown I see is the steel stocks. Zeus warned of a buildup in inventory and as weak economic numbers are released, that group continues to get hammered.
The only trades I have been doing all week are GOOG scalps. Mainly after the open if the stock drops fast, go in long and post a sell on the bounce. Here is where we are on the graph today. By the looks of it the downside could be ugly. But until that happens, I am sticking to the above strategy.
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