Off to an auspicious start.
Good morning! Happy New Year! The stock market is imploding!
The last two days of 2015 declined in a not-small way. Now 2016’s first day is being greeted by a record-sized decline already underway overnight.
Where does that put the market? Well, basis the S&P 500, the drop has now retraced all the way back down to its two-week old lows. That’s how much cushion the “Santa Claus” rally had provided.
The drop’s trigger is purportedly China crashing. An emotional reaction is deserved. Meanwhile, closures among Middle Eastern embassies are clarifying the division between Iran and Saudi Arabia, which probably doesn’t help.
The rule for today is that exiting the weekend with extreme sentiment is often a sentiment extreme. That’s not to justify buying the first tick, only to monitor whether the first hour has made things worse, or better.
We’ll take special interest in any January Effect candidates that end the day in positive territory. But let me know in the comments section of any other stocks of interest.
Hi Rod, crude looking to fill todays gap or??
look out below! @1983
Look’s like time for seat belts across the board.
TWTR is not coming off of its low around 22, let around recovering 24, which would help to validate its January Effect candidacy.
GPRO and FEYE have bounced back into positive territory, but not yet maintained their recoveries through the close, which would fulfill the bullish price action I described in this post.
Looks like DDD may be following suit??
DDD — That’s certainly an interesting move. Yet it is only noise in the range. But knife-catching a pullback to 9.15-9.20 with a tight stop would be compelling if offered.
So how should we be handling these Jan E. stocks. Look 4 close, just jump in, or get back above a specific $ amount and resistance ….?
My preference with the market still in flux (and deteriorating, not exactly improving) is to be patient
Does CAB look like a short to 34 or new lows? TY
CAB — Back under 32.20 would start to reverse momentum down, targeting 37. But above 51 would extend the rally.
Does DIS need to close under 102.40 to hold short? TY
DIS — You’re asking about 102.40 because it was tested intraday?
Was thinking that the last support would be in the 102.40 range. Previous highs back in Sept.
DIS — I do see the bounce in September, and testing its “lower prior highs” as support without closing back above it does suggest weakness. I’m not sure about the 102.40 reference, so much as just probing 61.8% back into the range, like down to 101 or 98, would be more relevant to close under if touched intraday.
MZOR for January? And if so, with what target(s) in mind?
MZOR — December’s new low finally probed fresh lows for the year, which is much later than a January Effect candidate. But closing above 11.75 would suggest more than a corrective bounce underway, with potential to 16.15 and 18.65
thanks.
JE are looking to be strong again @ open.
Another possible Jan. effect MU
Booked DIS short, TY, Rod
Wondering if SQ is worth a nibble @ 12 to retest 13? TY
SQ — I’m not sure about 12, there’s a lot more support at 11.85. Regardless, a bounce isn’t required, and could be limited to 12.60
SRNA — Some sort of surge this morning that has settled back down to .08-.09. Volume patterns into the surge were not at all impressive, so the surge seems very suspicious. Nevertheless, further downside won’t be in-play until closing back under .07
PMCB – big surge today. New parameters?
TASR gapped up this morning…Does this gap need to be filled before we see a bigger upside?
TASR — Filling today’s opening gap would not be bullish.
GPRO holding up ok through the wood shedding, sign of strength?
GPRO — I think so… Same as with the 12/14 analyst dump, and also Monday’s market drop… TWTR had similar bottoming tells before its corrective bounce
Good time to jump into GLD or wait for pullback tomorrow. Running strong with vol and above 103.50 and 104.50. TY
GLD — A second consecutive higher close tomorrow would confirm another 3.5 – 4% higher move underway. I would just as soon stalk a pullback for entry instead of jumping in after today’s big run