Last week I thought the market would be up early in the week, and down by the end of week. And that is how it played out. I attempted to capture some of the downside via IBM puts, which were lackluster and closed for a small gain. The roadmap for this week looks more positive. It appears that anything short of WW 3 and the market has the stones to rally. Within that context though, I think the market needs to suck in some more shorts by taking out last week’s low. So for this week, Monday rally, mid week dip, end of week rally. I would not be interested in the short side down here. Under last week’s low though, I am likely going to be interested in the long side.
Candidates for buys are MSFT and GOOG. I am following RBLX closely as well. There isn’t a preponderance of great set ups, which makes me not in a rush. I want to watch the semiconductor stocks in particular. It will be hard to get a good rally going without this sector, and right now they don’t look quite ready. Watching for signs of a bottom in this sector. Some of these stocks look like they could move lower before forming a bottom, so like I said no hurry. Too late to short, too early to buy just yet.