S&P is retesting former break out point. Probably still has some downside in next few days (Job data Friday).
MGM reported good earning. So gain some over there. F didn't work out (idea is right, but should choose GM over F.) CLH is also working ok.
High yielders such as MO/RAI/VZ, etc. are holding well. But likely to see some selling there also if market continues to fall. However, there are some bright spots on this down day. AAPL didn't fall under $346 even with QQQ rebalance. Financial are not falling apart (they are holding ok). Health care/Big Phama are holding ok.
Bond side: TIP reaches new high today. TLT/SHY also made some decent moves but likely to top around this yield level. Corporate credits barely moved (this might be a tell that market won't fall apart like 2008).
At this point, some energy shares are reaching important support level (COP/HES/OIH,etc.) There are definitely worries and some bearish pattern showing. However, US$ is not really rebounding. These energy shares are in the oversold zone after today's sell off. So some rebound is on the horizon but it is doubtful they will reach new highs again. This is the area you might want to test the water by buying small positions in these heavily sold off shares.
Whenever we reach such area, it is always tricky. On one hand, continuing selling may send market even lower. On the other hand, this is usually the area to jump in based on the experience in last two years. Does this change? I think we asked same question over and over again in last two years.
My best guess is that we still should take some chances at this point. If proved to be wrong, then we can take the loss and re-evaluate.
