As I had anticipated the equity markets gapped down at the open today. <\/p>\n
There is strong divergence all along, with large cap tech getting a bid while energy and financials being sold off. <\/p>\n
<\/p>\n
This is the reverse of the sector rotation we were seeing last week.<\/p>\n
Market Internals Diverge<\/strong> is negative on the NYSE by a 4.4:1 ratio while it is positive on the Nasdaq with a 1.58:1 ratio. However Nasdaq A\/D ratio is negative -1.65:1 while the NYSE A\/D ratio is negative -3.25:1 consistent with the breadth.<\/p>\n This divergence suggests across exch <\/p>\n anges, and even within the exchange suggests a confused market. <\/p>\n The strength is the Nasdaq seems to be driven by big Tech stocks like Apple and Google, while the broad market is being sold.<\/p>\n Treasuries Getting a Bid<\/strong> <\/p>\n There is increasing talk of Fed intervention to limit the yields and with reduced supply from <\/p>\n the treasury, shorts are closing their positions. There is also some portfolio reallocation going on, as <\/p>\n some managers move out from equities to bonds.<\/p>\n My Portfolio<\/strong><\/p>\n As I had anticip ated COF took a big dip <\/p>\n at the open after the announcement of the secondary offering. It easily made my downside target of $28.54. The secondary is likely to be priced today or tomorrow and the underwriter (Barclays) is likely to support the offering till at least <\/p>\n the end of the day. COF seems to be having strong support at $28. a bit into the secondary, while time-decay works in my favor. <\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n Some Other Stocks I am Watching: Gold Miners<\/strong><\/p>\n Based on the musings of some other traders I follow, I am also watching some precious metal related stocks like Seabridge Gold (SA) and Randgold Resources (GOLD). Gold is likely to benefit if the reflation thesis gains hold, and Gold stocks are likely to benefit in this bullish tape if gold makes another run for $1000\/ounce.<\/p>\n Outlook for the Rest of the Day<\/strong> ing some long energy positions on any additional pullback <\/p>\n in that sector with a focus on the oil-services and refiners.<\/p>\n","protected":false},"excerpt":{"rendered":" As I had anticipated the equity markets gapped down at the open today. download cure premature ejaculation by paul lain There is strong divergence all along, with large cap tech getting a bid while energy and financials being sold off. … Continue reading
\nThe market breadth <\/p>\n
\nAfter the quick climb last week, treasury yields are going down and treasuries are getting a bid. <\/p>\n
\nI have closed out most of my put positions, while keeping a small amount. I converted that portion into a bearish put spread by re-opening the short put leg I had bought back on Friday. This allows me to profit even if the price goes up <\/p>\n
\nI anticipate the market to continue its choppy behavior, as it digests the actions of the previous week. Individual sectors are likely to have their own cross-currents. I am look ing forward to build <\/p>\n