WEDNESDAY’S NOTES

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Well, at least we’re getting a pause in the currently rally, for now .. Aside from the indices, underneath the hood there is some backing & filling going on in some of the hotter spots of the market .. See the SMH & the chip stocks for an example .. There’s no selling whatsoever in the banks yet which have been scorching of late .. Every bull wants one more drawdown to set up a potential rally into year end, and that may be the main issue in why we won’t get one yet .. Gamma is still stuck up there at 2b strong with the gamma gang still claiming 3100 resistance & 3010 as a potential volatility trigger .. Our intraday & extreme short-term indicators have softened a bit .. thanks in large part to rotation & dull intraday price action .. EOD indicators remain on the warm side because we can’t finish a session red of late .. Positioning still looking delicious, as HEDGEFUNDS are actually reducing exposure in recent days.. That wasn’t a typo, I said REDUCING, not adding exposure to equities here .. As I mentioned the last couple days, I’m personally keeping my focus on individual names .. Looking for names that are catching sweepers at decent spots, while letting some of the hot stuff cool down a bit out there .. As for the indices, there’s obviously some downside risk over the short-term, especially off a legit catalyst .. I’d rather have ammo ready for that, when/if it ever shows up.