Bulls took multiple headline jabs this morning and it feels like it could have been worse. The S&P hit a low of 1449, a touch below the 8-day moving average, and is now trying to reclaim it. SPY low of the day was $145.63, and now we are back above $146.
Most traders holding multiple positions were just looking to manage/salvage trades. There is an art to trading days like today. Being in the right stocks is key as they sometimes give you chances to get out.
Banks were downgraded today and are still heavy. If you are looking for stocks to short when a rally gets long in the tooth, look to sectors that have shown relative strength on longer-term timeframes. The banks have been relatively weak for the past several years. The Financial Sector SPDR ETF (XLF) gapped below the 8-day MA, which stands at 15.99- the 21day is $15.52
High beta tech could use a break. Google (GOOG) is holding in well above the 8-day MA and could use a rest. The 8-day stands at $710.
Apple (AAPL) is shaking the tree, probably getting some guys to buy puts for quad witching before heading back to $700 plus. I don’t think highs of the year are in.
Microsoft (MSFT) is showing relative strength and trying to push though some important levels at $31.25.
Social media acts okay after yesterday’s strong performance. Yelp! (YELP) actually went positive and pushed higher. Facebook (FB) holds in well, it will make it easy to hold if it can stay above $22.50. LinkedIn (LNKD) is resting.
Oil is positive but broken. Gold (GLD) is holding the 8-day MA for now.
Disclosure: Scott Redler is long AAPL, FB, NFLX, LNKD, VMW, GRPN, YELP. Short SPY.