In case you didn’t see the news in all my snarky tweets, Elizabeth Holmes has completely jumped the shark, and is now offering the unfortunate souls who were stupid enough to buy shares in Theranos TWO of her shares for every ONE they bought. I’m not making this up. Oh, but there’s a catch: you have to promise not to sue her blonde-haired, blue-eyed ass.
With Micron’s enormous advance this morning, semiconductor companies are on fire. Contrarian soul that I am, I’ve decided to sell into this strength, having shorted the ETF below.
Since it seems the fate of the free world depends on this stupid healthcare vote, let’s talk about something – ANYTHING – else!
Below is the front month of crude oil. As much as I’d like it to plunge into the abyss, what I “like” doesn’t have much say-so in market direction. It seems to me that the commodity is steadying itself at the trendline and could be preparing for a turnaround back to major resistance at about $52.30 or so. Just a thought.
For equities in general, though, I would simply offer this headline on ZH that just came up:
The S&P 500’s ‘Trump Trade’ is still intact per a chart guy actually worth listening to, Rich Ross, who I met 7 years ago when he worked at the firm (Auerbach-Grayson) run by my late friend, Jonathan Auerbach. Nice guy with nice, clear charts and no need to over complicate things.
Here he shows SPY above its SMA 50, which folks, is one of the reasons why I covered my own short positions. The other reasons were that the SOX was still on its short-term moving averages and Goldman and the Financials were smashing into lateral support and getting oversold.
The rally that the bulls failed to manage yesterday has been delivered today, with SPX sustaining some trade above the daily lower band, though albeit not by a lot. So far the rally has retraced 50% of Tuesday’s decline while forming a very nice rising channel. So far this is a classic bear flag setup that on a break of channel support should at minimum deliver a retest of yesterday’s low. SPX 5min chart: