The Market and It’s 15 Minutes of Fame – #SassyMusings 4/1/14

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  • First day of the second quarter and money flowed in as expected. Of course it all flowed into a gap up, the very start of the day and the last 15 minutes of the day.
  • SPX at new highs. A bit of recovery in the biotech’s and the momentum stocks. So far trend seems to be pointing up.
  • The question is, will it last? Will we get a V shape reversal on all the stocks that got crushed in March or will this be a few days of money flow and then a flattish market or even a pullback again?
  • I don’t know the answer, but the giddiness on twitter at the close was a bit alarming. Keep an open mind. Luckily it’s only day one of the giddyness.
  • We have seasonality on our side as April tends to be very bullish.
  • If this year turns out to be a year of consolidating the five year bull run from 2009 then keep following the money flow as it rotates from sector to sector.
  • The energy sector has been heating up, but not all energy stocks are participating so be selective with what you pick. I’m thinking the same might happen with financials.
  • The momentum stocks (GOOG, FB, NFLX, TSLA, PCLN, even AAPL) gained some traction today. Follow through will be an important tell. TWTR still a dog and I’m glad I bailed on that. I should have known better when everyone started saying 50 was a good buy. That mistake won’t happen again.
  • Turns out the puts in GOOG and PCLN on Monday was a good tell that they would get a nice pop. goog.3.28
  • pcln.3.28FYI, the puts on GOOG are not there anymore.
  • Chart of the day: Followup to yesterday’s chart of the dayScreen Shot 2014-04-01 at 5.45.29 PM
  • Tweet of the Day: no one made me laugh. I expect if the run in stocks continues tomorrow several people will as they feel giddy.

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Have a great evening!

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