The market was weak from the start today and stayed that way the whole session. We had a major downgrade on AAPL and it opened near the prior day’s low and continued lower. Yesterday’s high was $108.76 and today’s open was $107.27 and we fell as low as $105.24 and closed at $105.52 -2.84. Needless to say we were stopped out on our 50% rule on the 9/108 calls.
The low in the Dow was -79 and again we climbed back to close - $46. The market internals today were nowhere near as bad as one would expect. Adv/dec were 1343 / 1610 and the volume was 430 / 400. This market has shrugged off all kinds of news. Today it was disappointment over Mr. Draghi and the ECB keeping rates unchanged and no new asset purchases. Between AAPL and TSCO (Tractor Supply) $69.38 -14.15 or 17% there was plenty of trepidation, and yet again we didn’t follow to the downside. As I said last night, this will go on as long as it does, and then it won’t, and even though I don’t foresee any major selloff, there will still be pain…
I have been asked to give more individual trades more often, so starting next week I will try to include a couple of short term trades. I won’t be forcing the issue, but rather looking for the ones that fit my risk / reward profile. CAM
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