Market Overview

Mid Day Trading Update – Bears Win This Round

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Granted we still have a significant portion of the afternoon session left to complete the day but the S&P is slowly trickling lower after a sharp sell off during the morning hours. It seems the jobs data had some affect on sentiment and it’s possible investors start pricing in a miss to Friday’s highly anticipated unemployment data.

Short-biased traders finally have a day where they could extract profits without being squeezed by incessant dip buying activity. Most sectors are solidly in the red today with the Financials taking a beating as well as Materials & the Precious Metals. One would have expected to see bounces in Gold & Silver as people come out of the equities markets but apparently they can’t catch a bid either. Those traders who got too long-biased from us hitting those all-time highs are definitely taking a brunt of these losses today with the S&P now down 17 handles. It is possible we see the dip buying to close out the session but, thus far, dip buyers have been met with even further selling pressure.

Netflix (NFLX) & LinkedIN (LNKD), among many other names, provided a substantial amount of percentage gains on the weekly puts and Sang Lucci subscribers were able to capitalize very nicely on these moves. In reality, you could have throw a dart at a board of Large-Cap names, shorted and made money today. Select stocks made better moves than others but as long as you didn’t get caught on the wrong side of the trade, you should have done fine. This, of course, goes for the intraday traders. For you bears out there who are looking to swing short, this could be the time but you really have to be careful not to get too heavy too early.

After today, the market is going to get very interesting. The volatility that today’s sell-off brought about is very good for intraday traders so we will be looking to get aggressive in the coming weeks as we go into the earnings season.

Make sure to register for yet another FREE webinar tomorrow on some of the basics of trading strategies. This one is for you newbies out there!

Stay tuned for tonight’s trading updates!

 

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