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Tuesday, February 6, 2018

Market Alert - Early Afternoon

I am not sure the market has the chops to hold onto this move, and even if it does, without sprinting home late, I am not that enamored with it. There was no fear flush out today. NASDAQ opened at the session low and rallied from there. Same with SOX. SP500, DJ30 dipped slightly after a lower open, but did not put, relatively, much more mileage downside than from the Monday low. Thus, there was not that total fear, panic selloff.

VIX did hit 50.3 on the high, good enough, then it imploded back to nearly flat. There was fear, but again, it did not feel as palpable as Monday, and typically the washout session is one where the despair is indeed palpable. As such, this may suffice as a relief/reflex bounce catalyst, but even that does not seem all that energetic.

Picked up some NFLX and it has held up reasonably well. Looking at AMZN, GOOG, NVDA, but because of what is noted above, we are waiting to see how the afternoon plays out. Those stocks are under just a bit of pressure here in the afternoon session -- maybe the market plunges in the last part of the session and that works to clean the pipes (employing a lot of plumbing-related descriptors today).

If this gets dicey, some positions that rebounded but are faltering may need to be closed. Don't necessarily like doing that in anticipation of a bounce, but if the early further drop was insufficient to do the job, there are some positions worth closing to versus holding.

SP500 -17.19, -0.62%
NASDAQ -10.01, -0.14%
DJ30 -82.09, -0.34%
SP400 -0.76%
RUTX -0.21%
SOX +0.99%
NASDAQ 100 +0.17%
Jon Johnson, Chief Market Strategist
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