Today really saw some mixed trading with the tech stocks holding up while the listed issues broke down for the most part. Small caps actually did ok as well overall. This morning I talked about a potential spill and that the OTC issues had already broken their steep up trend line while the listed issues were trying to. Well, today, they broke through as well is a convincing fashion.
At this point, with a whole slew of data tomorrow and then the employment report on Friday and with an ugly looking decline on the charts now, we could see some firming up tomorrow in front of the news. I see after hours buying taking place in conjunction with that thought. SPX 1246 was the breakout area and we closed at 1249 ... not too far away from a natural buy point. The NASDAQ is also resting on it's live angle line that crosses the tops going back to the first top in Jan 2004. In other words, things line up for a some sort of counter rally tomorrow.
I took some profits on the short index position today catching the meat of that move. If we get the counter short term rally, then the long position we took in the indexes will pan out as well. I believe it's still too early to pile back into stocks here and would rather wait that out a bit as other indicators suggest more declines are likely in store starting next week or even this Friday if that employment number prints badly.
At this point, with a whole slew of data tomorrow and then the employment report on Friday and with an ugly looking decline on the charts now, we could see some firming up tomorrow in front of the news. I see after hours buying taking place in conjunction with that thought. SPX 1246 was the breakout area and we closed at 1249 ... not too far away from a natural buy point. The NASDAQ is also resting on it's live angle line that crosses the tops going back to the first top in Jan 2004. In other words, things line up for a some sort of counter rally tomorrow.
I took some profits on the short index position today catching the meat of that move. If we get the counter short term rally, then the long position we took in the indexes will pan out as well. I believe it's still too early to pile back into stocks here and would rather wait that out a bit as other indicators suggest more declines are likely in store starting next week or even this Friday if that employment number prints badly.
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