We’re set for another big gap down this morning as the selloff keeps circling the globe. QQQQ is down 1.15% and SPY is down 0.67% as I type this. Asia and Europe have already taken their lumps today with losses from about 2% up to 4%. Will the U.S. markets break the cycle today? Beats me but I’m hoping we don’t attempt a rally until after 2 PM. That may scare out enough people to allow the market to bounce.
The sub-prime lenders are getting slammed again, led by NEW, FMT and NFI. I’m definitely keeping an eye on the financials today…
On Today’s Calendar:
- 10:00 — ISM Services
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: HSOA -20.1%, AMD -5.9%… Sub-prime mortgage deterioration continues: NEW -58% (filed NT-10K Friday night, noted possible “going concern paragraph”), FMT -23.3% (to exit sub-prime business), NFI -23.2%, LEND -17.0%, AHM -10.2%, IMH -9.4%, CFC -6.3%… Other news: MEMY -36.1% (says MEM 1003 did not prove effective for the treatment of bipolar mania, subsequently downgraded at Lazard), EMU -6.6%, SIL-6.5%, WVCM -6.0%
Gapping Up
Gapping up on strong earnings/guidance: AEZS +22.4%, OTIV +5.9%… M&A: ARXX +20.4% (to be acquired by General Atlantic and Francisco Partners), PTMK +8.9% (confirms it will be acquired by GAP)… Other news: MGRM +7.9 (announced data presentations at the CROI conference), BVF +4.9% (TEVA announced agreement with BVF regarding generic Wellbutrin XL), AMAG +4.4% (Ferumoxytol Data Monitoring Committee identifies no safety concerns in final data review).
Disclaimer & How I use this list
If not today after 2pm then pretty soon we’ll see a significant rally. I have posted the put/call ratio chart showing pretty high levels of bearishness which is likely to lead to a rally as it dissipates. Of course we could get even more bearish and selling, but using this with other technical indicators helps time trades!