Trucharts.com - Markets Update - 10/27
We had indicated that markets will move higher this week and the markets were flat today. Oil is still heading down - and the energy stocks are getting crushed - just look at some of the offshore drillers and equipment suppliers - HAL. NOV, DO, SDRL, RIG (www.trucharts.com/stockview.aspx?TICK=RIG) - just getting totally hammered. This does not bode well - even though we think oil complex is getting extremely oversold - we wrote covered call on our USO position today. Gold was down today - that is not a good sign for the commodity complex and the miners which have been hammered to almost ridiculous valuations.
TWTR, BWLD and AMGN reported earnings after hours. TWTR was down almost 10% in after hours trading. Cannot generate enough users and offered in line estimates. BWLD and AMGN reported positive earnings - we will see how these will react tomorrow. We had picked BWLD in our weekend blog.
Additionally we had indicated to keep on stock Alibaba - symbol BABA (www.trucharts.com/stockview.aspx?TICK=BABA) - that was up today.
We like CYBR - closed strong today - we expect that to go higher tomorrow.
We will keep an eye on VIX and the Biotech sector - a very crowded trade and now everyone is jumping on the bandwagon of the biotech sector.
Our positions are still holding long AAPL, T and watching BABA. Expect some consolidation next week - due to heavy earnings calendar next week. Our short on GM is still looking good.
Many biotech earnings are coming out this week. We will have to watch these closely - the biotech stocks are very extended technically.
Good luck trading..
trucharts team
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