A down day, finally. I tweeted this afternoon how I am sure (even the bulls) would like a down day to just relieve some of the pressure and have an opportunity to buy something back after it consolidates for a while. The bears are probably happy right now that they got down a day but anyone who is not short from yesterday or early today, is still in a losing trade.
Overall, the market right now is a bit frustrating. The bulls and bears both want a pull back. A pull-back will set up the charts well once again and will create a lot of attractive looking charts.
The other option that will happen now is that we just consolidate for a couple days (like have seen in the past) and then continue higher. This is definitely possible and because the trend is still up, I would have to say, the likely hood of this happening is higher than this being a major top in the market.
Something that stood out to me today was the oil sector – $OIH – This sector has been a laggard all year long but today it showed some renewed life. The $OIH showed us some relative strength today as it only closed down a .25% of while the he $SPY closed down around .5%. Not a ton of relative strength but it something to note going forward – maybe we see sector rotation into that sector soon? A couple names in that sector that are in that sector are, $TSO, $VLO, $XOM, etc.
Apple has been a mess and still in a macro downtrend, however there is a potential inverse head and shoulders pattern developing. It needs to hold higher now. See the chart below for the pattern details.
I took off the $GLD short today. Maybe a couple of days early but oh well, was a nice trade. Now we need to see if it holds lower and continues lower. Would not be buying the metals in general though.
The banks – same with the markets – need some time to build some nice flags before going higher. Would not chase it here at all though.
Alright, that is it for the daily analysis today. If you have any questions/comments feel free to shoot me an email or Tweet. Will get back to you as soon as I can.
Here are some charts I posted today –