More Random Thoughts: Social Media Stocks, China, and Key Technical Levels
From the Buzz & Banter: Todd Harrison shares his updated thoughts on the market.
Here are my updated random thoughts on the market as of 12:38 p.m. EDT:
Twitter (NYSE: TWTR) still trades funky, like someone has been letting the air out of the tires since the company missed on earnings.
Then again, Facebook (NASDAQ:FB) and LinkedIn (NYSE:LNKD) are also underperforming, so perhaps it's something in the space. Either way, these names led the tape higher, so it's worth noting.
The double- or triple-leveraged ETFs are decent vehicles intraday but get dicey when held for longer time horizons.
It looks like China is going the "debt destruction" route; time will tell if it will be orderly.
I still believe there will be a time to buy China and short the US on a pairs basis; I'm just not sure when that will be. If the Shanghai Composite (SHA:000001) breaks 1985 (the level, not the year), it has a 10% risk to the downside from there.
Headlines aside, it's worth remembering that textbook technical analysis dictates a retest of breakout levels; those levels are S&P (INDEXSP:.INX) 1850, NDX (INDEXNASDAQ:NDX) 3640, and Russell (INDEXRUSSELL:RUT) 1182.
BKX (INDEXSP:BKX) 71.50 and TRAN (INDEXDJX:DJT) 7600 would "confirm" the breakout, if and when one should happen.
And just like that, the VXO (INDEXCBOE:VXO) is off 17.5%.
Minyan March Madness deadline is Thursday, March 20, at 11 a.m EDT. Good luck!
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Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at email@example.com.
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