TruCharts.com - Stock Charts Blog PM Update 10/2/2014
TruCharts.com - Free Stock Charts - Markets bounced back from being down around 130 points to almost breakeven for the day. All eyes are on the employment report tomorrow for September. We have been hearing the same story for the last 5 years - this report is presented every month and every analyst will try to digest the meaning of the number and how the Fed will pursue future monetary policy. We do not think the Fed is going to change it's stance based on the number tomorrow. Bond buying will stop this month and rates will go up next year. We think the markets will bounce from this level and this oversold condition to the 50 day SMA. Expect some volatility here and since the VIX moved up too far too fast we would expect a pullback in the VIX and a bounce in some stocks that look oversold technically. Oil drilling stocks bounced back and gold miner stocks were down today. We will short GM as it moves up to the 50d SMA. We DO NOT LIKE the biotech stocks - if you have positions and profits in this sector - please sell and take profits. We would sell into any rallies.
Staying short LUV, HPQ, DAL, SNDK and GM.
Our SNDK position is doing well as is HPQ.
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