Nothing to Worry About.
I am looking at overnight trading and we're looking at a gap higher. I'm thinking that the employment report is going to be "good" and someone thinks that they know it. The problem is, if it's good, then it puts pressure on the Fed to NOT drop rates any further. That's BAD for the market. Watch out. Sentiment is looking frothy for the first time in Months (last February). That's not a Sell signal, but we ought to be careful.
DOW: The Dow looks tired, but OK.
S&P500: The S&P wore us out in a tight range. We're up in Globex, however.
NDX: The Nasdaq was stronger than expected and that's Bullish. One more shot up?
RUT: The Russell was up too. I suspect that we see 835 before it turns over.
HUI: The miners hit support and shot higher. Bullish.
CSCO: Cisco is gone for a nice profit. We gave it as much room as we could.
WR: Westar was up nicely.
AMLN: Amylin was down, but not enough to worry about.
NNI: Nelnet was up and I'll take it.
BCSI: We're short Blue Coat thanks to a late update after the split. That type of a break is uncharacteristic of a split.
ATML: Atmel was down a bit, but still in the wedge.
ANET: Authorize.net was down but it's testing the wedge. I still like it. Ballsy players can nibble here, but be advised that I am worried about the market.
VSAT: Viasat looks strong.
HAYZ: Hayes Lemmerz was tight in the wedge.
DELL: Dell was up and consolidating. It can break up and run. I don't think immediately, but I've been wrong before and I will be again.
BNI: Burlington Northern looks appealing.
DEEP: Superior Offshore looks Bullish here.
Summary:
I have to say it. I'm more Bearish than I've been in months. There, I feel better. Don't you be too. I'm almost always early. Sometimes WAAAAAY early. Sure, sometimes I'm spot on, but tops are always tricky and I'm not even calling for anything important. I'm just pretty confident that we have some selling coming. Of course, when I was less Bearish, I was looking for that selling next week and as I think about it, that's a good call. If I'm to be anything like right, the market should start getting thinner over the next several days. That means that vulnerable issues will be dumped from portfolios and in theory, a well-selected few shorts could both perform and provide some insurance against a "surprise" decline.
Be Well, and Trade Smarter Than the Average Bear!
-The ChartSmarts Team
For 10/5/7:
Current Positions:
Long 50% WR at 24.67, stop at 24.26
Long 50% AMLN at 49.44, stop at 48.12
Long 50% NNI at 18.83, stop at 18.04
Short 50% BSCI at 39.89, stop at 41.70
Watch List :
ATML: Buy 50% on a print of 5.27, stop at 5.06
ANET: Buy 50% on a print of 18.11, stop at 17.38
VSAT: Buy 50% on a print of 32.77, stop at 31.33.
HAYZ: Buy 50% on a print of 4.43, stop at 4.18
DELL: Buy 50% on a print of 28.04, stop at 27.02
BNI: Buy 50% on a print of 83.97, stop at 80.61
DEEP: Buy 50% on a print of 11.81, stop at 11.22
Changes in Current Positions:
We are stopped out of CSCO at 32.13 (+8.95%)
We are now 50% short BCSI at 39.89
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