Is That a Bounce or Are You About to Get Pounced? #SassyMusings 4/8/14
- I don’t know, can we call today a bounce? It’s not a 2013 bounce, but hey a bounce is a bounce.
- Finacials still meh led by the big dog himself GS.
- Tech hung in there pretty well, but was somewhat bifurcated. Of course it was led down by the other dog herself AAPL.
- I was encouraged seeing QQQ not make a new low this morning when SPX did. They were the ones that led us down after all. That’s why we bought them today. I was even more encouraged seeing them go out near the highs.
- I don’t think we are out of the woods yet, but I would say the brunt of the excessive selling in names that still have decent valuation is probably close to done. That doesn’t mean they will shoot to new highs though.
- This year I believe valuations on momo stocks will become a bit more inline and earnings will matter. That is a good thing. Let us benefit from knowing which companies are worthy and which aren’t. I like that challenge because I’m good at that.
- Oh yeah and do you remember from yesterday that I was instructed to root for UConn? That’s how it’s done, but I digress.
- To sum it up, gone are the days we can blindly buy anything because it dipped. Seculars will likely begin to gain some popularity as we transition away from 19 million dollar buyouts. And momo won’t be as exciting as it has been. If you trade options, prepare yourself and make adjustments as there will likely be lots of theta burn.
- Here is some open interest porn:
- I was asked this morning my opinion on FSLR puts. I said no because this was a new darling of Wall Street and on any bounce it will probably be bought first. But did I remember that when we started bouncing. Nope!
- No biggie though. We caught SPLK near lows and some other goodies. Don’t need to get them all, just enough good ones.
- Chart of the day: Those spikes (in red) worked before.
- Tweet of the day: I think people lost their humor since the beat-down from last week. Come on guys…cheer up! Make me laugh!
- Check out my first testimonial (unsolicited of course) and consider subscribing.
Have a good evening.