MV Sports Report: Short Stops Overrun Market
Rain or shine, we reivew the day's biggest stock stories.
That being said, the market was indeed open today -- but judging by the closing prices, it didn't do much. For the day, the S&P 500 closed up 0.01%, to 1028.
On today's Buzz, Quint Tatro gave an update on his trading position.
"I continue to be uncomfortable with what I am seeing in this tape. The S&P 1025 area is serving as quite a battle ground with no real winner standing up just yet. Whenever I feel this way, especially after a good run, my tendency is to pull back, raise significant cash levels and wait it out.
"I have done just that today, taking the FlexFolio back to a 90% cash position, holding just a smidge of Citigroup (C), a smidge of China Short (FXP) and my portfolio staple Westport Innovations (WPRT) (Keep in mind, a 100 shares but hey it's still a staple)."
Quint is on to something: The market does feel "strange"; I think it's stalled here, as many traders are on vacation, and the data flow has been weak. I believe we won't see a major change in character until after the Labor Day holiday.
That being said, a lot of people are jumping on the top bandwagon and shorting this market.
This is confirmed by the number of short ideas on the Buzz and Banter today. I thought one of the better ones was from Professor Smita Sadana.
"A break below the 339 level could lead to the 50-dma on Baidu (BIDU).
Click to enlarge
"And if that happens, the target would be the 50-dma again. And if that happens that would be its third visit to the 50-dma.
"As always, I got ahead of myself. I would keep very short stops on this; yesterday's closing price makes for a decent stop.
"Depending on the risk appetite, the stop can even be lower at $345, as this 1-minute chart shows."
Click to enlarge
Heads up on GDP tomorrow morning: Consensus calls for a 1.4% drop. Initial jobless claims are also out before the bell. Maybe those will move this market.
Have a great night!
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