Bulls Will Have Their Day......Later
After the bell NVLS, SMTC, ADCT warned they will miss earnings estimates. This is exactly what we were writing about in our most recent post. Clearly, we are in a treacherous time period in which much caution in the market needs to be exercised. Keep in mind that warnings season will last the next 4-5 weeks. Disapointments should be expected during this time period, and traders need to be cognizant that the market is in a nasty mood lately.
The Nasdaq was down aprox: .4% and the volume increased from yesterday. That marks another distribution day. Breadth was negative although the small caps did show slight outperformance. The market even caught a slight bid in the final 30 minutes. We expect that the market may once again mindlessly try to follow through on the pathetic late afternoon bid by attempting to rally sometime tommorrow. Be warned that Bears would love this as much as they do honey.
There is serious technical damage to this market that will require more basing action at best. A good whoosh would be perfect, but the market will probably not be so accomodating to the bears either. Therefore, the more likely scenario is for the market to continue trending down with intermitten blips to the upside.
Fundamentally corporate America is in fine shape with tremendously exciting pipelines of new technology products soon to be released. However, the market needs to mark time and further obsess over slowing growth and inflation pressures . The storm may have been the perfect excuse to focus on these issues that have been brewing under the surface for a while.
What are we doing?
Traders and investors need to remember that rotation into technology stocks of companies with new products is substantially overdue. We believe that the technology sector will finally appear to be the only safe haven in the multi sector slowdown that is starting to catch attention. Rotation into the tech sector will create the ultimate leadership that will restore confidence to the market. Liquidity and herd driven psycology will ignite a tech driven Nasdaq rally that will most likely kick off this fall. The economy will be lead by the technology sector much like it was in 1998. The returns of the stock market will disproportionately benefit the tech driven Nasdaq. Most investors will miss this narrow but relentless rebirth of the Nasdaq. We expect it to be glorious for the traders who position themselves now and pounce later.
If You Held a Taser to Our Head: We will use any pop tommorrow in the stock market to scale into more shorts of various ETFs. The "bullmiesters" are acting stubborn and still intend on trying to save the market . One or two more failed rallies would set up the sweet scenario that we are positioning for.
Have a good night. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
The Nasdaq was down aprox: .4% and the volume increased from yesterday. That marks another distribution day. Breadth was negative although the small caps did show slight outperformance. The market even caught a slight bid in the final 30 minutes. We expect that the market may once again mindlessly try to follow through on the pathetic late afternoon bid by attempting to rally sometime tommorrow. Be warned that Bears would love this as much as they do honey.
There is serious technical damage to this market that will require more basing action at best. A good whoosh would be perfect, but the market will probably not be so accomodating to the bears either. Therefore, the more likely scenario is for the market to continue trending down with intermitten blips to the upside.
Fundamentally corporate America is in fine shape with tremendously exciting pipelines of new technology products soon to be released. However, the market needs to mark time and further obsess over slowing growth and inflation pressures . The storm may have been the perfect excuse to focus on these issues that have been brewing under the surface for a while.
What are we doing?
Traders and investors need to remember that rotation into technology stocks of companies with new products is substantially overdue. We believe that the technology sector will finally appear to be the only safe haven in the multi sector slowdown that is starting to catch attention. Rotation into the tech sector will create the ultimate leadership that will restore confidence to the market. Liquidity and herd driven psycology will ignite a tech driven Nasdaq rally that will most likely kick off this fall. The economy will be lead by the technology sector much like it was in 1998. The returns of the stock market will disproportionately benefit the tech driven Nasdaq. Most investors will miss this narrow but relentless rebirth of the Nasdaq. We expect it to be glorious for the traders who position themselves now and pounce later.
If You Held a Taser to Our Head: We will use any pop tommorrow in the stock market to scale into more shorts of various ETFs. The "bullmiesters" are acting stubborn and still intend on trying to save the market . One or two more failed rallies would set up the sweet scenario that we are positioning for.
Have a good night. ___________________________________________________
The analysis, opinions and/or forecasts expressed on the Kcap Trading Blog (âKTBâ) are for informational purposes only and should not be relied upon in making investment decisions. By using this site you agree that Kleiner Capital Management, LLC (âKCAPâ) and its principals are not liable for any action you take or any decision you make in reliance on any content. Please be aware that there is no commitment by KCAP to update the KTB. Furthermore, there may be inconsistent timing and follow up (if any) of posts.
None of the information on KTB is considered individualized investment advice and should not be construed as a recommendation or solicitation to purchase any securities. Reliance on information provided on KTB in no way establishes an advisor-client relationship. Investors are encouraged to seek the advice of a qualified investment professional prior to investing funds.
Clients of KCAP, as well as the firmâs principals and other employees, may be invested in securities discussed at KTB. However, any mention of said securities is not intended to influence market conditions for the security to the benefit of KCAP clients and/or principals and employees. KCAP is not affiliated with any advertisers on this site and does not endorse any of their content. For additional information and disclosures, please visit www.kleinercapital.com.
The information on KTB has been furnished from sources we consider to be reliable, but no guarantee is made with respect to accuracy.
___________________________
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posted by Kleiner Capital Management, LLC. | 4:48 PM
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