Early strength this morning was followed by a strong midday rally after decent economic news and an oversold market brought in buyers. Late day profit taking resulted in the Dow, Nasdaq and S&P 500 all finishing off their highs. Each managed to end the day up over 1%.
I used weakness over the last several trading days to initiate small positions in high yielding names such as, World Wrestling Entertainment (NYSE:WWE), Frontier Communications (NYSE:FTR), Annaly Capital Management (NYSE:NLY) and Apollo Investment Corp (NASDAQ:AINV).
I began unwinding my position in Apollo Investment Corp (AINV) on positive price action. In addition, I used today's strength to begin to lightening up on ConocoPhillips (NYSE:COP).
I expect modest follow through tomorrow, but all bets are off for the end of the week as options expiration is Friday, August 20th.
Overall Sentiment: Cautious
Projection: S&P 500 sell-off to 1,042 followed by rally to 1,280
My largest positions at days end are:
Disclosure: Long: WWE, FTR, NLY, AINV, COP, EXC, HCN