Stocks eked out modest gains today, but another sharp drop in U.S. oil prices again showed how the troubled sector is far from out of the woods.
The Dow Jones rose 28 points, after rising close to 184 points early in the day. The S&P added 0.1%, with gains limited by a 2.2% decline in the index’s energy stocks. The Nasdaq fell 0.3%.
China posted their GDP at 6.9% which was the slowest in a quarter of a century…and that’s if you believe their numbers, I never have and I never will.
China is bent on devaluing their currency and I may short the Yuan soon.
There are contagion fears centered around oil and the market is now not only worried about small to mid sized energy companies that will go bankrupt, but banks that have deep exposures to energy.
Financials (XLF) are now in bear market territory. Stay away, avoid like plague for now.
The two companies of interest that reported earnings after the close were NFLX and IBM.
NFLX rose about 8%, but Big Blue continued with its string of disappointments.
I took a small loss on TNA today, sooner than expected, but at the time I didn’t like the tape action. We’ll revisit it again.
I also added two new shorts today.
TREE- (Lending Tree)
This is a classic bear flag (pennant) so I added it in as a short at 67.70
Also notice the big trendline break (green line). This also can portend evil things to come.
I also added GPS (Gap Stores) short. This one should have been put out of its misery with the Huckapooh shirt. Another beautiful bear flag set up.
Have a great evening.
Joe