“The newspapers are going to be tough on you. And prison is very, very hard on people who hurt kids. If you get the opportunity, you should kill yourself” –Rust, True Detective
The last few days have been challenging as we go up in the morning and seem to fade later in the day. That’s OK. We hit all time highs recently and some backing and filling is part of the natural process. Ebb and flow, up and down. The momentum stocks are the first to lead and the first to pull back in. As an example (there are many), a stock like $YELP tags $100 then pulls back to $87.
When you look at the bigger picture, at least for now, the $SPX hasn’t done a whole helluva lot. Even with this muted pullback, it has managed to hold its 8 and 10 day moving averages, which from by perch is constructive and quite bullish. We needed a pause and we got one. I will say though, that if we break those two moving averages, the 1850 level (and maybe lower) could be in store. If that happens we are still in a very bullish trend and you should buy the dip.
$TSLA got kicked out of New Jersey to insure that buying a car will always suck. Ohio could be next. The stock popped anyway. Ackman has drifted into the seedy bowels of K Street to hire lobbyists and other fine folks that you wouldn’t want to be seen with to help make his $HLF short work. Now would be a great time for Icahn to convince the company to do an LBO at $100. Wouldn’t that be cool theater?
I believe that we are going through a process of adjustment whereby the market acclimates to a 4% and not 7.5% growth in China.
My gut tells me we will end this lethargy soon and rally hard, maybe today.
Focusing on: $IBB (and related names), $YY, $SPLK, $SCTY
Get ready for some tomfoolery and skullduggery soon.
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