In yesterday’s post, Two Saucy Sailors, I featured a new short position on CoreWeave (CRWV) which just happened to report earnings after the close yesterday. It spiked higher for a minute or two but then began weakening. Pre-open, the stock is down about 7%, tacking on another leg down in what has been a very long slide in the AI-dependent, poorly-named corporation.
It helps that the market is down in general. Take note of the S&P 500 futures and the arrow marking the “China Deal Framework” mega-rally. That entire push higher has been laid waste, and the huge countertrend rally we saw yesterday accomplished nothing except to tag the base of massive overhead supply. Congratulations, bulls. ZeroHedge would be so proud of you.
The small caps also paint an interesting picture. I’ve put the same “China” arrow on this one, although that rally was very short-lived (literally minutes) before it began hammering out a steady series of lower highs and lower lows, the very definition of a downtrend. The broken trendline remains a potent level of resistance.
As for precious metals, they’re up again, but I think they’re just about out of steam. The horizontal I’ve drawn is, in my opinion (obviously – – who else is up at this hour typing this stuff??) the deep line in the sand. I suspect the precious metal rally will discover sellers now.
This point is emphasized by the GDX chart (this is a daily chart and does not reflect after-hours action). That gap is a very solid point of resistance.
In general, I’ll happily take a triple-digit red number on the /NQ instead of all the horrific green we saw yesterday. I’m coming into the day with 27 short positions and no obvious stinkers at this point.
The bond market is closed today, due to Veterans Day. Korean War Captain Delos L. Knight, Jr., I salute you, sir!
