{+++}The S&P opened horribly this morning on re Europe uncertainty. At around 11:30 though, it stopped going down, went sideways for a bit and then staged a nice rally. The Nasdaq 100 (NDX) actually rallied over forty points from its bottom.
Coal was hit again, but natural gas is in the midst of a very nice oversold rally. Maybe gas prices bottomed. Hopefully the selling is getting dried out in the coal sector, but we probably need to watch the group for another week to be sure. As you know I lowered the stop on ACI and I will let you know when and if I buy more to lower our cost. Because it is our only long term idea, I am OK with lowering the cost. I don’t average down on day trades or short term swing ideas.
I added AAPL and MSFT to the buy list today. AAPL may have a little more risk, but it’s risk that I can live with at these prices. I bought MSFT because it has come down about 8% from recent highs and it “may” have put in a mini double bottom on the daily chart. It’s also the type of stock where money may go to hide in a tough tape.
Some technical levels held today, but we’re not out of the woods yet. Many sectors are breaking and they may not be done going down yet.
Here are a couple of long ideas that I may enter tomorrow. They are pullbacks that have held support and maybe ready for a bounce should the market rally. Please check the P&L for entries and exits.
JEF held the 200 day simple moving average and could be good for a couple if we rally.
ITRI also held the 200 day moving avewrage. In a perfect world you should try to pick it up on the lower end of the range that is listed on the P&L.
Good luck tomorrow.