It’s a good day to think about your gap trading rules. Obviously the market’s gapping down today. It’s probably a good idea not to chase the gaps right out of the gate — that includes buying all these ‘security’ plays that are gapping up. I’m not sure if I’m going to make any moves today but I’ll certainly be watching those security stocks, the gold ETFs as well as QQQQ, DIA and SPY.
Potential swing trades:
Longs – None until August (after the earnings flood)
Shorts – None until August (after the earnings flood)
Potential day trades:
(From Briefing.com)
Gapping Down
London attacks are sending various sectors lower: Oil & Gas Momentum Stocks (FUEL -7%, MPET -6%, SOSA -4%), Travel (DAL -8%, TZOO -6%, CTRP -2.4%, PCLN -2%, IACI -2%)… Disappointing same store sales/guidance: ACMR -13%, BJ -5%, AEOS -3%…. Other News: IDTI -7% (guides lower), ASTM -6%, SANM -6% (Thomas Weisel downgrade), DNDN -5%, DEO -5% (provides guidance), CTTY -4.7% (profit taking after 34% move yesterday), SOHU -4%, IPII -4% (profit taking after 10% move yesterday), ALVR -4% (profit taking after 8% move yesterday), CSG -3.4%, THQI -3.3%.
Gapping Up
Security stocks trading higher on London attacks:
SYNX +77%, TBUS +48%, IPIX +37%, GEPT +22%, MACE +22%, STKR +19%, RAE +19%, ISON +18%, MAGS +17%, IMX +15%, VISGE +11%, AATK +8%, IDNX +8%, IOTN +6.3%, COGT +5%, DHB +4.4%, TASR +2%….. Gold stocks are higher on the attacks: HMY +3%, BGO +2.2%, GG +2.2%, NEM +2%…. Other News, Under $3: GLGS +27%, SCON +13% (reports prelim Q2 sales), VLGC +10%.
Intraday Updates:
- 09:01 Keep an eye on GLD and IAU, the Gold ETFs
- 10:19 I’m not seeing anything I want to mess with so I’m gonna call it a day.
Hmmm…well, the markets @9:45 EST are reasonably calm considering what happened. Small gap up on gold stocks, but really they’re fairly flat. TRIN has actually pulled back from abut the 1.30 level to 1.07. Volume seems low as well…I don’t see any real panic. Unless I’m missing something.
Nope, you’ve pretty much nailed it.
The Nasdaq is green and the Dow just went green. I would personally like to see the markets close with gains as it would send these terrorists a message.
Gekko
Today once again proves that anything can happen from day-to-day in the market…and any reaction is possible after anything happens.
Sounds like you’ve been reading Mark Douglas.
I think the fact that markets could rally when such a tragedy occurs, highlights the seriousness of the terroism threat and the difficulty countering the same despite all the excellent efforts. Secondarily, a rally on such a day illustrates how speculative and over-optimistic traders really are this summer — and how a sharp reversal may be likely in the near future. Those under-30 year olds who have never seen a real market trouncing in a day or two may be in for an interesting ride.
Well that was a pretty amazing recovery today…that’s all I have to say. Just flat out amazing. A random event, or balance due to the spike low in oil…or foreshadowing for a good jobs number tomorrow?
Hmmm…I think I’ll put it all on black 17.
Mark Douglas indeed! It is so much more comforting not to be surprised by anything anymore.
But I must indulge my appetite for speculation to say that today’s resilience *could* add further support to the Fed’s belief that the economy is quite healthy and can continue to swallow higher rates (not to mention higher oil prices). Yet, the conundrum also continues. Housing stocks did quite well today – continuing a journey that *appears* headed to a new leg up!