Astronauts’ two main concerns are floating off into space and avoiding fatal mechanical defects during launch. We traders, once we launch our positions, metaphorically grapple with the primal awe and fear of pushing out into the void.
The Dow Jones Industrial Average (DIA) after a 7-day decline under the 10-day moving average, could barely remain green today. With a narrow range inside the range of Tuesday, DIA rallied enough to work off oversold conditions but not enough to foster new confidence.
Same applies to the S&P 500 (SPY). With its second close under the 10 DMA, should we anticipate that more correction is in store?
The Russell 2000 fared a bit better. After closing beneath the fast moving average for the second time since June 29th, the attempt to pierce back above it, although valiant indeed, nevertheless did not make the cut.
That leaves Nasdaq 100. Avoiding fire in the spacecraft thus far, QQQs continue to trade above the 10 daily moving average after receiving support from stellar earnings in 3 out of the 4 FANG stocks.
Considering the market’s recent orbit to new highs, are we now uttering the famous words: “Houston, we have a problem?â€
In spite of some instrument’s spotty communication with ground control, space oddities such as the balletic effects of zero gravity occurred in several other instruments.
My Family ‘tellsâ€, particularly Regional Banks, Transportation and Retail all rallied. Yet they barely voyaged beyond the constraints of resistance.
Biotech, our speculative brother, demonstrated the “right stuff†while Semiconductors, our astral sister, experienced weightlessness.
As earnings season progresses, a few specific stocks, Twitter (TWTR), 3-D Printing (DDD), and Fit-Bit (FIT), all rocketed.
And what’s a star trek without the sun? First Solar’s strong earnings report should deliver renewable energy to the solar sector.
