Take A Breather

Good morning y’all. Pretty quiet morning for equities markets as perhaps it’s finally time for a rest after a 7 day winning streak. Goldman Sachs  reiterated a call for another leg of this bull market. Asian and European markets are mixed while the Nikkei is down roughly .25% and the CAC and FTSE are up small, and the 10-year yield is trading around 2.89%. Vladimir Putin is in the news once again after writing an piece in the New York Times outlining a plea from the Russian government for caution regarding the Syrian situation.

Lululemon $LULU is getting smoked today after poor earnings results. The company has been in a lull since Sheergate, and the street is not responding well to its guidance revisions. Men’s Warehouse $MW is also taking a beating this morning on weak earnings.

Not a ton of movers this morning with the markets so flat. Facebook $FB continues to rage higher after breaching the $45 level late in yesterday’s session, and the stock has become Wall Street’s newest darling. We saw some interesting tweets this morning reminding us that even if you bought Facebook the morning after the earnings gap, you’d still be up 40%! Incredible strength from Facebook.

Apple $AAPL is getting a small bid this morning after getting obliterated yesterday. We are flat $AAPL and we’re going to need to see some definitive action from the stock before jumping back in. There will probably be some tactical opportunities in the name, but that’s it for now.

Netflix $NFLX is pulling back this morning after an incredible run on Tuesday to over $310 per share. Look for a potential bounce at the $297-$299 level, but a breach of that could lead to further selling pressure.

Our $T and $HD positions have been working against us the last couple of days as the broader market has sustained this rally, but our thesis for these positions remains intact. Keep an eye on $AGO for further selling pressure after huge put buyers stepped in late in yesterday’s session, and we’ll keep an eye on the action in $GOOG to see if it can get some continuation today.


Posted on September 12, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

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