Wild day yesterday. WE CONSIDER YESTERDAY A DECENT REVERSAL YESTERDAY UNTIL OTHERWISE. We outlined the potential for a reversal yesterday morning only because good reversals occur on a break of support off of a wicked open. We can never predict one happening…just outline when one could happen.
Another word for a reversal is a washout. It serves to wash out late sellers AFTER a break of support intraday…only to suck those late sellers out at the most inopportune time.
That said…THE TAPE IS A MESS….THERE ARE ONLY A HANDFUL OF DECENT LOOKING NAMES…. JUST ABOUT EVERYTHING IS BELOW THE 200 DAY AVERAGE….SEEING A DECENT AMOUNT OF BLOW-UPS…AND YES, STILL FEELS COMPLACENT OUT THERE.
But after a day like yesterday, you usually see some upside testing…usually. Would not go further than that. Again, the tape is a mess.
This morning, futures were down recently but now flattish. BOEING (BA) up $16 this morning…about 100 DOW points…a big help. MCD was a big help yesterday with CAT and MMM being the opposite. TXN down $6 not helping the SEMIS but a look at the SOX from yesterday shows a long tail from new yearly lows.
We remain in the midst of earnings season. Lots of jello going to be moving on the plate.
TESLA up $33 yesterday and another $7 this morning. Go to www,citronresearch.com for why. TEFLON!
Lastly, in answer to a question…yes, we are entering what usually is a seasonally strong period of November/December…but just watch price.