The market’s being dragged down by the big drop in the Shanghai index. That index has gone parapbolic and even today’s 9% drop looks like just a hiccup. There are a few Chinese names I’ll be watching. BIDU looked like it was setting up for a short yesterday. I also want to see how all these recent solar IPOs, like CSIQ, SOLF, JASO & TSL hold up.
As for our indices, the Dow should open around the February lows and the S&P is blasting through its July trendline. QQQQ has now wiped out all of it’s late February breakout and is back into that multi-month trading range.
On Today’s Calendar:
- 10:00 — Consumer Confidence
- 10:00 — Existing Home Sales
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
Gapping down on weak earnings/guidance: SHFL -12.8% (guides Q1 revs below consensus)… China Sell-Off: Closed end funds (GRR -8.8%, GCH -7.3%, PGJ -7.0%, CAF -5.9%, FXI -4.3%), KONG -10.6%, TSL -8.8%, JASO -8.1%, ACH -7.8%, EFUT -7.5%, CHINA -7.4%, SOLF -7.3%, CMED -7.0%, LFC -6.9%, CEA -6.7%, YZC -6.0%, XING -5.6%, CTRP -5.4%, HMIN -3.8% (See our 8:04 comment for details on China)… Other news: Profit-taking in momentum names (URZ -11.3%, AIXG -8.1%, FRG -6.2%), AAUK -6.3% (profit-taking in gold), THOR -6.9% (downgraded to Sell at Lazard).
Gapping Up
Gapping up on strong earnings/guidance: OSCI +9.1%, BRCD +6.7% (also multiple upgrades), RIMG +5.5%, APSG +4.6%, COGT +4.2%, MRVL +4.1% (also upgraded to Buy at Needham), RSH +3.6%, VTIV +1.9%… Other news: ELOS +7.2% (announces exclusive agreement with P&G), CRGN +5.3% (upgraded to Strong Buy at BWS), CHRW +3.5% (will replace HMA in S&P 500), SNE +1.5% (EMI’s Martin Bandier close to becoming head of Sony’s music biz – NY Post).
Disclaimer & How I use this list
If you’re not selling, you’re praying. $SPX -37.00. Yikes…
Some buyers out there, too. Still long, not feeling strong, but still long
:-”
China’s drop is a proximate cause for the US market drop or just providing a trigger for a correction that’s been in the cards for a while?
I’m leaning towards “proximate cause” b/c I don’t think a “correction” was due. We had one last year, and a six-week consolidation just a month ago.
But, I will make decisions after a good meal, good night’s sleep, and watching the foreign markets and the GDP report tomorrow morning.