Wednesday, May 26, 2010

Wandering Wednesday


Dow Jones 9,974.45 -69.30 -0.69%

NASDAQ 2,195.88 -15.07 -0.68%

S&P 500 1,067.95 -6.08 -0.57%


Market closed down after being up most of the day. It was coming sooner or later, not a lot of conviction by the bulls. Not enough inflow. People bailed during and after the Flash Crash and they don't want to mess with this now.


As AAPL slid downhill toward the close, surrendering a gain of almost $7 (at today's high), I moved closer to a re-entry into VXX. I just couldn't pull the trigger, though, concerned that a late-day buy program could throttle me and my little position.


A minute before the closing bell, I wanted VXX at 30.99. (I'd cancelled an earlier buy at 30.44.) But I wouldn't hit the buy button, and VXX closed at 31.03. As soon as afterhours trading began, VXX went up and up, carrying that market momo. At 31.25, I thought again about entering. I had no reason to have doubt at that point. But I didn't want to chase, so I didn't buy. Currently trading at 31.69 on thin volume.


When the day started, I was prepared to trade AAPL in a consistent range, but I never felt comfortable enough with the potential of a sudden selloff, never got confident enough with possible entry points, so I stayed out after the early sell in premarket.


• AAPL 244.10 (-1.11 -0.45%) sold off toward the close, a victim of its success. Everyone's taking their profits to bank them and/or cover losses (in other stocks). I'm glad I got out at 257 a couple of weeks ago, and I'm glad I got out early today with a profit. It's my favorite retail company, but the fantasy of buy-and-hold is long gone. AAPL is also a tool to be used and used up. Currently 242.91 after hours.


• BIDU 67.59 (-1.49 -2.16%) was in a tight range early on, then just faded. Gone are the momentum traders.


• C 3.86 (+0.08 +2.12%) rolled from yesterday's closing 3.78 to a high of 4.19 today on an upgrade. Wild ride on a bank stock. A decade ago, who woulda thunk it?


• EWY 42.09 (-0.11 -0.26%) hanging tough despite tension at the DMZ.


• F 11.39 (+0.37 +3.36%) was below 11 just two days ago. Toyota continues to crumple with recalls and Ford keeps hauling ass ahead of the competition.


• FAZ 16.52 (+0.27 +1.69%) was buried earlier, then rallied from a low of 15.09 to its high of 16.58 near the close.


• FXE 121.57 (-1.41 -1.15%) continues to fall as the Euro's comeback lasts just a couple of days. Cramer says it's because China is rumored to be thinking of selling its European bonds. Something like that.


• GS 140.30 (-2.26 -6.43%) faded again, perhaps on lack of followthrough on a rumor yesterday (again) that there would be a settlement with the SEC.


• IRE 4.87 (+0.18 +3.84%) held on to its gain despite falling from its intraday high (5.15). I saw the price change from 5.11 to 5.03 in the blink of an eye at mid-day. NBG took a hit, too, but STD was ripped with a 4.73% loss despite taking measures to combat its credit crisis.


• USO up 2.32% (finally) as oil bounces. SCO took a 5.12% hit.


• GLD up 1.11 to 118.47, but TLT down 0.28 to 98.57.


• US dollar (UUP) stable today.


Back to 100% cash since premarket. Didn't expect to go tradeless the rest of the day, but dry powder is a good thing these days.


Feel like the market has you in a headlock?

Go cash, young gun, and be free


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