Today was a 2% up day for the market clothed in a .5% gain. The heavily shorted names led the way with some energy sector names rallying another 10%+ on top of yesterdays strong gains.
A stock like $CRR is soaring, but still has a long way to go to even think about recovering the losses from record highs.
This morning stocks gave up their early gains and looked poised to fulfill that correction scenario everyone seems to think is coming. Let's not get into the reasons, because we know its a lot easier to give a reason for stocks stocks to fall, after they fall, than it is to actually position for a fall because of said excuse. Monday Morning QB's don't have an off season in the stock market. Just ask those bears who were already penning their 150th "yeah I nailed this downside" blog post this morning as stocks reversed lower.
Yet again morning market weakness was just another opportunity for dip buyers, corporations, Central Banks, and/or the Plunge Protection team, depending on what disgruntled bear you ask......, to buy stocks at cheaper prices. Since 2009 each dip has worked out tremendously well for the dip buyers, and I didn't think this morning's dip will be any different. Even better I didn't give up today, I remained patient, and the market kindly cooperated. Everything came together.
Bonds fell off a cliff.
Anyone reading last nights update saw the looming overhead resistance. A level $TLT just could not break. Today buyers left and bonds collapsed.
After yesterdays late day swoon, the market hung on to early gains to close in positive territory. The FED minutes released two hours before the closing bell provided opportunity for a few "wild swings" before stocks decided to close just off session highs. The NASDAQ led the way, even the likes of Zillow closed sharply higher.
Today's Unusual Option Scans and Bullish/Bearish Crossovers:
Stocks looked strong early but lost their luster late. Three of the last four Tuesdays have seen stocks take a tumble.
The Tuesday Tumble. Red Tuesday. Terrible Tuesday. Tell Me About it Wednesday Tuesday. Take The Day Off Tuesday. Whatever you want to call it. It's nothing like a Tuesday in 2013 when the market rallied 20 consecutive Tuesdays. But it is certainly something to keep an eye on, especially with the timing and velocity of the pull backs.
The market has continued to fall in the days following a Terrible Tuesday. Will tomorrow see a continuation of this trend? Or will the market rebound? Some great thoughts on that here:
Where Is The Market Going Tomorrow?
Some additional thoughts and charts:
Stock futures plunged after the Jobs report on Friday.
Today the market realized that bad is again good - It recovered Friday's losses and for good measure proceeded to rally an additional .6%.
It was the second consecutive Monday rally. Last Monday's rally was swiftly negated the following trading session. Will tomorrow see stocks suffer a similar fate?
S&P500 Futures RED Friday and GREEN Monday:
