Stock market is on shaky ground
That doesn’t mean the market is simply going straight down from here – if it were only that easy.
That’s because, despite the sudden bearishness that has been prevalent throughout this week, there is still that pesky dip buying mentality of the stock market that won’t let the 8 year rally go away. That was evident on Wednesday when we had the hard bounce that wiped out all of the prior day’s downside.
But the game changer was yesterday, because it brought us the first dead cat bounce in quite some time. For those of you who don’t know what that is, it is a term for a stock market in decline that provides a relief rally, only to be sold again. That is what we had yesterday when SPX wiped out Wednesday’s rally, and much, much more.
The Volatility Index (VIX) was, at one point, up 51%, but gave up most of that to only finish 14% higher on the day.
The 50-day moving average was tested yesterday by SPX and while there was a momentary slip below it, for the most part it held, and eventually rallied to wipe almost half the day’s losses.
So today, we can see the market bounce back and continue the see-saw effect of the last four trading sessions, or get more action to the downside, and actually jump start a sustained market sell-off.
Oh, and it is quarter end today as well, just to spice things up a bit.
S&P 500 Technical Analysis
Current Stock Trading Portfolio Balance:
- 2 Long Positions, 2 Short Positions
Recent Stock Trade Notables:
- Intel (INTC) Short at $35.21, covered at $34.46 for a 2.1% profit.
- Nvdia (NVDA): Long at $155.57, closed at $157.53 for a 1.3% profit.
- IBB: Long at $298.24, closed at $303.74 for a 1.8% profit.
- SPXU: Long at $15.68, closed at $15.25 for a 2.7% loss.
- Whirlpool (WHR): Long at $190.46, closed at $195.19 for a 2.5% profit.
- Ferrari (RACE): Long at $84.60, closed at $89.93 for a 6.3% profit.
- Amazon (AMZN): Long at $964.70, closed at $1001.23 for a 3.8% profit.
- American Airlines (AAL): Long at $49.18, closed at $50.62 for a 2.9% profit
- Alibaba Group (BABA): Long at $124.95, closed at $137.51 for a 10.1% profit.
- Starbucks (SBUX): Long at $61.78, closed at $63.68 for a 3.1% profit.
- Western Digital (WDC): Long at $91.24, closed at $89.29 for a 2.1% loss.
- Broadcom (AVGO): Long at $236.65, closed at $241.15 for a 2% profit.
- SPXU: Long at 16.60, closed at $16.98 for a 2.3% profit.
- JP Morgan Chase (JPM): Long at $87.84, closed at $85.98 for a 2.1% loss.
- Micron Technology (MU): Long at $29.00, closed at $28.04 for a 3.3% loss.
- Alibaba Group (BABA): Long at $116.25, closed at $124.09 for a 6.7% profit.
- Southwest Airlines (LUV): Long at $58.35, closed at 57.23 for a 1.9% loss.
- Broadcom (AVGO): Long at $223.63, closed at $228.65 for a 2.2% profit.
- Workday (WDAY): Long at 86.00, closed at 90.32 for a 5% profit.
- Univar (UNVR): Long at $30.96, closed at $32.20 for a 4% profit.
- Alibaba Group (BABA): Long at $111.91, closed at $115.48 for a 3.2% profit.
- Redhat (RHT): Long at $85.21, closed at $87.21 foor a 2.4% profit.
- Darling Ingredients (DAR): Long at $15.19, closed at $14.90 for a 1.9% loss.
- Apple (AAPL): Long at $143.82, closed at $147.11 for a 2.3% profit.
- Teradyne (TER): Long at $31.16, closed at $33.03 for a 6.0% profit.
- UPRO: Long at $92.75, closed at $94.78 for a 2.2% profit.
