The Chip Flip
Just when I thought I could kick back and relax...
Adam Brodsky is writing today's trading diary. Toddo will return to his post on Monday.
Quick update on what I am seeing. After putting in a great show yesterday the semis seem to have turned around and for sale. Is this the start of a third wave down in the SOX you Elliott Wave fans? It certainly could be if the market doesn't stabilize. It feels that everyone who bought yesterday's move is puking out his or her stock today.
This is important for two reasons. One it shows the true nature of everyone's feelings. In my opinion, the market's trading is reflecting that no one has any confidence and like jellyfish in the ocean, are being swung around by the cross currents. Secondly, there is little volume and stock spreads are wide which is also indicative of a choppy marketplace.
In my estimation it is best to watch the leaders, both up and down, to gauge where we may be headed. Yesterday's big winner was the SOX and now it's today's big loser. That says it all folks. It seems Toddo had it right yesterday when he suggested to watch Intel (INTC:NASD) as a market barometer for tech stocks. In fact, as I am writing this now it appears INTC may have bottomed. Let's see what happens now...
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 firstname.lastname@example.org.
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