{+++} It was a wild day on the Street as stocks got hammered. Everyone was on the port side of the Titanic watching the fireworks display. One sided markets get punished and this is a one sided market. Oil stocks were crushed and crude has dropped about $7 bucks in two days. The energy sector has a decent weighting in the S&P, so naturally the index was pressured .
Our shorts did well and we took some nice profits on TZA and ROVI. The S&P is resting on moving average support so we may get a bounce. The question will be, is it a buyable bounce or a bounce that should be shorted some more? I think it will be the latter, but I don’t mind being in some cash here while the market figures itself out. Obama will speak tomorrow on the budget and QE2 looks like it may be coming to an end, so the move in interest rates is to the upside NOT the downside. It will be interesting to see how these “great” corporate earnings will continue when the S&P 500 comes off the government teet in the third and fourth quarter with higher rates in their face.
There aren’t any new names tonight, but if I see anything interesting I will email you guys during market hours. A bounce may be coming, we’ll see. Please check the P&L nightly for any adjustments.
