Friday, 9 May 2014

Just another day

It was just another day in market land, with morning equity gains, but then some afternoon declines. Once again, there was particular weakness in the R2K/Nasdaq, but with the Transports breaking a new historic high, it remains a very mixed picture.

Trans, weekly

R2K, weekly


So...a new historic high for the Trans, but the morning gains in the R2K were completely reversed, and the daily net decline of -1.0%, is currently making for a rather significant weekly fall of -2.8%.

What about this disparity? I still think it is more about a simple rotation from the over-hyped stocks into the more conservative ones. Clearly though, the degree of weakness in the R2K is something we've not seen since late 2012.

Looking ahead

The only notable aspect tomorrow is wholesale trade data, but really, I don't think many will have any particular interest in that.

*there is sig' QE-pomo of $2bn or so..and bears should be mindful of QE next Monday of around $3bn.

Permabear battling away

Today sure was mixed for yours truly. I bailed on RIG and SDRL at the open (very good gains), but decided to hold CHK, DO, and STX. On reflection, I probably should have just sold everything, yet all of those trio are still offering much higher levels in the near term.


An opening exit, stopped out at $44.70...not too bad eh? Those opening black-fail candles are usually to be taken very seriously!

As for tomorrow, I'd actually consider picking up a small size block in RIG, so long as it holds the 50 day MA in the $41.30s. The recent earnings were fine, and it might make for a good 1-2 day trade.

As things are, despite the ongoing weakness in the R2K/Nasdaq, I simply can't be picking up any index shorts...yet. Maybe in a few weeks.

Goodnight from London