Wednesday was another long boring day. We opened and sold off without much conviction, rallied several times, but in the end we had just drifted a little lower. It is a long held adage that you “don’t short a quiet market,” and this one seems to go with that rule. Even with the selloff in the oil we just couldn’t really press the downside for long. As noted last night, there were some truly terrible earnings reports in the solar stocks and they certainly showed no lack of sellers. Today a couple of the popular names fared no better. Shake Shack missed and was punished while Ralph Lauren rallied as Coach and Michael Kors fell.
The gold rebounded but couldn’t hold the bulk of the rally and closed just under mid-range. We bought the GLD 8/127 calls on Tuesday and while they did rally I am keeping a close eye on the position. I expect to use the texting service to issue either a stop or a sell order tomorrow.
The Oil had tough day failing to continue its climb, closing about 7/8s down on the range. CAM
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