Worms were turning today.Pigs were indeed jumping.
Housing, Banking, Financial and Retail groups followed though higher.
Much higher.
Volume was heavy. The Nasdaq reversed higher on the heaviest trade in at least 1000 sessions (my daily screen stops at 1k; no doubt we saw larger in the Great Purge of 2000; point is today was big in terms of volume traded, heaviest in several years).
And all in the face of iconoclastic-slambastic bloodletting of heroes AAPL and GOOG.
We knew volatility was running high this month. Wily and woolly. Opportunities open up for those left standing and inefficiencies can be lucrative. At one point on the tape, breadth on the NYSE was negative by only a few hundred issues (~1400 vs. 1900) at the same time the NDX was negative more than 4%.
That was enough for me to get excited (that is unprecedented underlying strength coincident with such ClockworkOranging upon a leading index). I didn't go woolly wild, but I added to my retail and tech positions by shorting the double-short Russell 2000, TWM (thus making me double-long the R2k index). This was basically a gimme (blind squirrel stuff). The Russell has tracked more closely the demise in the Financials than any outside index (remarkably so) for what has been around nine months now.
But today the Financials were blasting Jesus while the Russell was merely humming Yanni. Once the Russell started firming I (finally) got short TWM at 91.80. The last hour of the day today was exceptionally powerful.
The Lord, he set out with a hundred sheep - he gonna come home with a hundred sheep.
Jesus loves the weak and helpless after all.
No comments:
Post a Comment