Yesterday, I read a story (here), talking about how some day soon “dip-buyers will be punished for their Pavlovian behavior.” This is someone I have read occasionally for years, nice call. Nice also to see most of my longs (DMND, GILD) up and shorts down (DE, XRT, SPY, FOSL) for a change. Only TBT and GLD didn;t do so well, they’re gone.
That reversal in Apple should give people pause. $25 in a few hours! And Moody’s warns about downgrades to 17 global banks (here). And the futures are down another 50 Dow points. Options expiration Friday will keep the nerves frayed. Whoever triggered the leg down timed it perfectly, waiting till dip buyers took it up to the morning highs. Technically, intra-day reversals in THE stock should worry people although levels in the indexes (and in Apple) are not that scary as yet.