$SPY review, $IBB review and select other names. I consider this a bulltrap day as the volume was very low. Refer to January 14th chart for the $SPY. Ukraine issue is definitely much more serious than the market action would have us believe. The market seems to be over extending the liquidity bets a bit early here, so I do expect that the S&P 500 hits 1900, then reverses back down to the 1840 level or lower BEFORE actually breaking 1900 convincingly. In other words, it very much appears to me to be a classic bulltrap type algo as the macro picture does not support the pricing at this time.
This makes for a very difficult market to say the least because both short term and mid term traders want a clear direction. With so many stock married to indices moves, like the $IBB, trading individual names does become much harder.
Take note of our biotech and energy watch list. On the biotech watch list, one of those companies will be a feature article that we already have done, but we are waiting for a bit more clarity for the Ukraine issue. Because of the Ukraine issue, energy names are continuing to catch good bids, with $CPE easily blowing past our minimum target price today per our trade call opinion when the stock was $9.20.
I still maintain my short term market prediction = pressure. Yes, the market has gone higher on a 2 day basis. I define short term market moves as 1 to 3 weeks, so I expect a move towards the bottom of the current trading range within that time period. Afterwards, I do think we trend higher, but not before we get a bigger down move. Enjoy the video!
Scott
