Pre-Market Analysis September 20 2013:
Futures are pointing a little lower this morning. It looks like the drop was prompted by the St. Louis Fed Chief saying their could be an October taper (and that the Fed can call a press conference, even if one isn’t scheduled).
Given Wednesday’s surge higher, it’s unlikely an October taper is priced in at these levels. So this seems to explain why precious metals are getting hit pre-market. And just wait until the debt ceiling becomes a front and centre thing.
At least the new iPhones seem to be selling out around the world. So maybe that will prove bullish for AAPL shares. I really find it funny how fickle investors seem to be on AAPL. This company is not the next BBRY. C’mon.
By the way, watch out for European consumer confidence out at 10am eastern. But I don’t expect that to make a huge dent in today’s market action.
So what else are we trading today?
Portfolio Review: September 20 2013
I don’t mean to sound too reactionary, but my game plan today is to sit and see what happens. I know it’s good to be proactive. But I’m still sort of waiting for the dust to settle before deploying much more capital.
As I described yesterday evening, I think SNV is still fairly priced, despite the damage in KRE. So if the broader-sector bounces today (on hopes of an October taper), then I think SNV has got to be in play.
On the other hand, I’ll probably steer clear of IAG for now, because it looks like gold is about to get hammered at the open. This might prove to be an entry opportunity. But I’ll want to look at the charts a little closer before making a play on any gold miners – make sense?
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Back with more later! Have a great Friday.
September 20 2013: Stock Market Day in Review
It was another wild one on Wall Street. And I know you’re probably dying to get on with your weekend, so I’ll be sure to keep this short…
I bought some SNV this morning, only to see it flop about for the day. I was a little surprised with the lack of upside, given the bounce in KRE. But I didn’t sustain much damage relative to the Dow Industrials, so I can’t be too upset.
The decline in BRKS caught me a little off guard too. Luckily I have a conservative cost basis and my position isn’t actually that big. And honestly…
I’m feeling increasingly lucky about my daytrading of IAG – since it’s now given back all of the no-taper gains, which followed Wednesday’s Fed announcement. To make matters worse for this Canadian gold miner, it was downgraded by Goldman Sachs, further exacerbating the selling. If it can close above $5.10 I might consider re-evaluating the stock early next week.
The last thing I want to point out before packing it in for the weekend is the divergence between the major Dow stocks and the small caps. Notably, IWM hardly sustained any selling on the day. And QQQ didn’t look too bad either. For these reasons I’m not too concerned with today’s sell off in the Dow.
There may very well be a debt ceiling sell-off coming at us. But for now I’m buying that dip.
Plus I’m going on vacation next week. So who cares.