This market has had the “market” beaten out of it. If I had any sense – – or, more precisely, if I had the sense to not have any sense – – I’d just throw charts and reason out the window and dump my entire net worth into SPY calls so I could spend the next ten years cleaning out my nostrils. But I’m not dumb enough to be smart, so I can only sit back and watch, slack-jawed.
Take the chart below, for instance, from which I’ve removed the price bars; I merely show a trio of exponential moving averages (50, 100, 200) against the S&P 500 index.
The social media fund, symbol SOCL, has an interesting relationship with its Fibonacci retracement levels. Its current position suggests weakness ahead next week for this sector.
I went long crude oil earlier today, but this isn’t a long-term trade. I think that USO, shown below, has a good shot at closing the gap, but it’s likely to resume its much broader downtrend.
Another occasional winner, folks! And this one is a doozy.
In my video to everyone from Sunday, Santa Claws Part 3, one of my short ideas was IMGN (by chance, it happens to be the thumbnail image of the video). It lost half its value this morning, even though, as the geniuses at CNBC might say, it is “off the lows”. Still, this is the kind of short position that is oh-so-sweet when it works: