The intraday decline of NASDAQ on Wednesday mirrored the intraday rise of Tuesday, which essentially means that market participants are completely confused as to the true short-term trend. Stay tuned. We're probably just going though a little "consolidation", or maybe a "mini" correction (3-5%.)
NASDAQ futures are up modestly, indicating a modest "recovery bounce" at the open, but whether hedge funds follow through with any significant buying or sell into the rally remains to be seen. Any bounce might kick off a short-squeeze rally, but any bounce could just as well be a classic "dead-cat bounce" which could be followed by renewed selling tomorrow.
Still waiting for word on my IPO allocations, but either way I will be long Lending Club (NYSE:LC) and Momo (NASDAQ:MOMO) by the end of the day. Probably just small positions since IPOs frequently have dips before they stabilize. Tomorrow I'll pick up some HortonWorks (NASDAQ:HDP), New Relic (NYSE:NEWR), and Workiva (NYSE:WK) on their IPOs.
I may pick up some more Oil (NYSEARCA:OIL) on its recent dip.
-- Jack Krupansky
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: Long OIL