Here are my latest thoughts on the market, in no particular order:
GW Pharmaceuticals (NASDAQ:GWPH) is sitting on its 50-day moving average in and around $62.50. The 200-day, for purposes of perspective, is down at $36.
I sold my stock this week between $66 and $71 and will look for the right time and price to enter again.
NYSE internals are 2:1 negative while Nasdaq-100 (INDEXNASDAQ:NDX) breadth is 4:1 negative, which is helping to drive another "S's over N's" outperformance day.
In a world of high-frequency trading, the markets can turn on a dime; given the current price action and internals heading into the weekend, it's the bears' ball to fumble into the close.
The iShares Nasdaq Biotechnology Index ETF (NASDAQ:IBB) is slipping now, too.
The bulls will argue that the market is simply deflating the frothiest sectors (high-beta tech) as the S&P 500 (INDEXSP:.INX) is less than 2% from all-time highs. That's true, with the caveat that these names led us higher and they may well lead us lower.
Amazon.com (NASDAQ:AMZN) down $55 (or 16.7%) from its overnight high, Tesla Motors (NASDAQ:TSLA) down $10, Netflix (NASDAQ:NFLX) down $15, Priceline (NASDAQ:PCLN) down $42; just another day at the office.
Days like today yearn for some trading commandments, and here they are.
As always, I hope this finds you well.
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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 firstname.lastname@example.org.
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