Happy independence day!
I know it is July 4th and I should be taking the day off however, after Monday's market action especially with tech, I wanted to get this out. (I am always looking out for my Lions).
Stock market action yesterday, I would have to surmise, was driven by algorithmic trading. There was an initial movement of cash into tech which suddenly reversed-then cash moved into financials, and other DOW components. (There was also a rise in volatility, cash moved into the dollar, came out of bonds, and gold/silver derivatives got hammered).
Here is my concern.
I have been watching tech for a few weeks now waiting for a reversal, which appeared to be starting in early trading yesterday however the abrupt reversal out of tech rattled me.
For now I am still holding both FB and AAPL (now hedged calls) click here: https://www.traderschoice.net/money-page--stock-picks.html however depending on the price action tomorrow I may close these positions and possibly even go short (by closing my calls and adding to my put hedges).
If I am wrong here (and this is certainly possible), I do not want to lead us into a battle which we cannot win.
It is possible my Lions that we may have to retreat from this current battle and re-evaluate.
I will keep you all posted.
Gregory Mannarino
