Very late post today as I’ve had a very bitty day. I’m heading out again as soon as I’ve posted this so I’ll be brief.
I mentioned yesterday morning that yesterday and today were both cycle trend days, meaning that there were 70% odds on each day that either buyers or sellers would dominate that day. Yesterday morning opened strongly for bulls, and then sellers dominated the day from the AM high. Today so far has been the mirror image, with bears opening strong and the rest of the day so far being dominated by buyers.
Here’s today’s swing-trading watch-list:
Long Waddell & Reed Financial (WDR)
My trading friend (and, these days, shoulder to cry on) Northman Trader put up a Tech Dreck post which neatly shows the rot beneath the glowing surface of the NASDAQ. These charts all scream “poor breadth”, and if our bullish friends want to continue this nonsense into 2016, they’re going to need to see a lot more participation from stuff besides just the heroes of FANG. (Click any chart for a bigger version):
Well, I suppose if there’s any week of the year that Turkey should be important, it’s this one: this morning’s news of Turkey’s “stabbing Russia in the back” by shooting down one of its warplanes have caused the kind of price action I like to see on the ES……..
Today was an odd combination of boring and annoying, but I managed to eke out a small profit by day’s end. The centerpiece of the lunacy early on was crude oil, which I was excitedly watching crumble last night. In the early morning hours, I glanced at my iPad, and I had a total WTF moment when I saw crude was rocketing higher based on the fact Saudi Arabia, which apparently has joined the rest of the world in believing descending markets should be forbidden, stated they would do everything in their power to reverse oil’s price slide (see arrow mark). Most of that gain unraveled not long after, but then crude gyrated aimlessly the entire day. Oil’s muddy water is even less clear now.
I assume most of you have seen The Godfather Part II. In it, the character Hyman Roth (who is modeled after Meyer Lansky) tells MIchael Corleone, “We’re bigger than U.S. Steel” (which was actually a direct quote from Lansky regarding the mafia).
Well, times have changed. Take a look at US Steel, which today hit the lowest level of any data I can access:
The most amazing part of all? Amazon’s price rise today (to yet another lifetime high) was nearly five times the entire market cap of U.S. Steel. We live in interesting times, don’t we?