Long night of work Thursday left me short on sleep, but waking up to a market in red is bittersweet. Yeah, emotion has no place in trading, but even though I'm 100% in cash, I'd rather study the moment than move too quickly 90 minutes into the session.
Dow -179 (-2.16%)
Nas -52 (-1.56%)
S&P -23 (-2.04%)
• HAUP and it's tiny 8-million share float have become a lottery ticket of sorts. Shares opened at 8 am Eastern higher at 3.50, and opened at 4.32. HAUP hit a high of 4.85, then sold off to the 4.00 level twice since the opening bell. Currently at 4.25 (+1.20, +39.60%). How long can HAUP stay up in a negative market?
Never returned to the Fibonacci levels I posted yesterday. Hard to believe people still shorted HAUP after the press release about Apple. Then again, I didn't buy any shares like I intuitively wanted to. Trying to be disciplined here...
• FAZ, which I sold at a tiny loss at 12.51 before the close yesterday, is at 13.77 (+1.10, +8.68%) now, near its high of the day. In fact, all the short ETFs are in happy town this morning. VXX (27.42, +2.67, +10.56%) is tearing it up big, which is interesting. It was quiet yesterday, actually in negative territory, while most of the market was slightly down. More true to its normal behavior today. I was starting to believe VXX moved more when there was violence on financial TV, i.e. Greek riots.
• GLD and SLV are in the red, proving that even hot precious metals have their topping points, and boy, were they topped out. Barf city, finally, but a great run for cautious traders. GLD (119.71, -0.85, -0.71%) isn't doing badly compared to the rest of the market.
• TMT, the 30-year treasuries ETF, is up 6.10% to 37.05. How nice is that? And how weird. Treasuries? I'm following this first the first time. This is Grandma speeding down the road in a Camaro. Vroom Vroom!
•As expected, there's action in the FXI and FXP. I didn't want to touch either even as China's market is at a -21% correction. FXP is up 5.3% this morning to 44.68. JJC, the copper ETF and second cousin of FXI, is predictably down 2.35% to 42.36. Not sure how much lower China can go, but it's pretty scary from the long side.
The gutsy traders are picking up shares there pretty cheap.
• FXE is down 1.18% to 123.46. If the euro were to make a comeback, this would've been the day after a week of dips. Euro bulls are hating this, but printing out a trillion dollars of new bills doesn't add value, so FXE is stagnant for some time, most likely. Meanwhile, EUO (short euro) is up 2.33% to 24.59.
I'm still 100% cash. I missed the early morning run on the hedge side, but I'm not drowning in a sea of red on the long side either. ChessnWine at iBankCoin is a genius, of course. He called the downturn two days ago while the market was revving up on the long side. He and The Fly, with their time machine, a.k.a. The PPT, are kicking royal ass.
The Dow is now down -211. It's early Friday... can it get worse before the close? Or do we get a pre-weekend rally?
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