"Things work out best for those who make the best of how things work out." --John Wooden
We opened with large gaps lower today which makes this a tough market to be in once again since gaps are large and you just never know which way the gap will come.
That said, I did try shorting some N:ABBV and O:NFLX today and they started to work for us but then we saw some strong action come into markets and stocks suddenly, and whether this was due to OPEC announcing they may agree to a coordinated oil production cut, or due to the plunge protection team getting back in action, I do not know.
The facts are that I took a $0.50 loss per share in ABBV and a $0.10 loss in my NFLX trade.
No big deal really but the strength spooked me out, so I’m back to all cash.
The charts are a mess and there isn’t much pointing anywhere in particular but this sloppy action generally points to lower but we are now at oversold levels where bounces do occur, so while technical analysis of the daily charts isn’t working great right now, we can do well during the day as we just see what’s moving.
SPDR S&P 500 (N:SPY) took the longs to the woodshed this morning with a hefty gap lower and then choppy action.
Above 185 is positive, unless we gap down like we did today, and support at 180 from the
August low is holding for now.
All in all the chart is sloppy, pointing to lower, but we’re at or very near oversold levels so I have no idea where we go from here Friday.
It’s just that kind of market so I stay in cash or use very tight stops and try not to hold overnight unless the trade is working well.
Have a nice night and long weekend.