Tuesday, September 27, 2011

RECAP: Cautionary Note About Today's Market Rally

While the market finished up today 147 points many major players either sat this rally out, or traded down.  After Apple's GAP UP it steadily sold off finishing the day -1%.  Amazon was also weak today finishing the day down nearly -2.5%.  Chipotle steadily sold off throughout the day and closed at -2.7%.  FAZ (Direxion Financial Bear 3x Shares) GAPED DOWN at the open nearly $5 and had a huge late day surge at 2:30pm @ 56 and closing the day @ 60.37 at HOD.  XLF the SPDR FINANCIAL ETF did the exactl opposite (as its supposed to do) selling off hard into the close 2%. SPX finished the day @ 1175 up 1%, but sold off hard into the close starting at around 2:30pm dropping nearly 20 points, or about 2%.

My Take on all this is too be cautious and nimble with your trades going forward these next few days.  I am skeptical of markets where the leaders lag.  This was an unusual +150 close and will treat it as such.

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