{+++} Well it was a nice day today, and they closed them on the highs, which is what you always want to see.
Then GOOG and IBM happened……..after the market closed. GOOG was down about $30 from its closing price in the after market ( but rallied about 17 points since) and IBM looks to be down about 8 off its closing price, both from poor earnings. Anyway, IBM still has a decent weighting in the Dow, and GOOG in the Nazzy, so expect a lower open tomorrow.
Hopefully the bulls can shake it off, but so far this earnings quarter has been a disaster (see JPM, BAC).
TO REITERATE ( and I may say this every night), this market is harder this year, the dynamics have changed and it WON’T be as easy as last year. There will still be great and profitable ideas though. Don’t forget that Washington has been quiet, (not for long), and the November elections are in motion, (jockeying for position is starting), whether you realize it or not. Historically this cycle hasn’t been overly kind to stocks.
You can easily make the case that this year is a digestion year after the 30% pop in SPX last year. Could be.
So this year will emphasize STOCK SELECTION and not just buy and go away. My durations will probably be shorter, because honestly I don’t trust the whole buy and hold idea.
On the first day of this year, the S&P opened at 1845, we closed today at 1862. We are four months in, and we are flat. The QQQ and IWM have corrected fairly substantially.
Again, great setups will present themselves, but it will be harder. Not so easy.
I added FAS and TNA as starters with wider stops. I still believe the Russell put in a short term bottom. The financials are waiting for GS in the morning.
I added FANG long tonight with a 71.60 buy point.
