“Not with a bang but a whimper”
Appears two themes are now winding their way to what should be quite the interesting little denouement. You have on one hand certain former leading stocks that look to be fashioning almost blatant Head and Shoulder patterns, while on the other you’ve got present-day market-leaders pulling back and so far finding support at all the logical places. While some would say these Head and Shoulders are far too obvious to work, the same could very well be said of the 10 or so stocks, the BIDUs, NFLXs and CRMs of the world, which everybody seems to be watching like hawks. That then begs the obvious question: Which of these two obvious themes will end up working? Could be the answer is neither, as I noted in last night’s commentary. Could be we just chop and slop our way from here on out, moving around a lot but ultimately going nowhere, thus making the most amount of people unhappy as possible.
So whether it’s all these Head and Shoulders or all the stocks that found support at their 10-, 20- and 50-day moving averages today, everybody sees it. Nobody wants a market that goes nowhere, so it could be that’s just what we will all get. The market doesn’t offer refunds to unsatisfied customers either.
Enjoy the show!
Disclosure: Long: SPXU, TZA, SQQQ; short: V.