Gap ups like we saw this morning are not times to get over-excited! SPY opened up into the first support outlined, $122.80-123.20, and indices have since faded to fill the gap.
High growth stocks continue to get hard as we see some de-leveraging. Chinese stocks continue to get hit hard, with Baidu.com (BIDU) and Sina (SINA) seeing heavy selling. BIDU is certainly the cream of the crop in the group, and is getting a nice bounce after capitulating.
Green Mountain Coffee Roasters (GMCR) opened higher and got whacked again. The stock is a dog, and it feels like there is plenty more downside to come.
Apple (AAPL) opened around $383.75 and has been weak. Watch the low of the day as the next pivot to trade against. The pattern is starting to become more damaged.
Amazon.com (AMZN) had small follow through to yesterdays upside reversal after an upgrade, but the move was muted with the market coming in hard.
Google (GOOG) seems to consistently be the best in the group. It's hanging in there still in the upper range, and if the market catches a bid over the next few weeks it should blast off to new 52-week highs.
Casinos are still weak as Wynn Resorts (WYNN) comes into big support in the $95-105 area. Las Vegas Sands (LVS) support is $40ish.
Gold (GLD) is not getting much of a bounce after getting crushed over the past three days. It feels like there could be more downside to come.
Anybody who bought after this gap up as of 10:30 doesn’t feel so good. That is is the way the trade has been. If you are looking for follow-through you are getting frustrated.
*DISCLOSURES: Scott Redler is long OIH. He traded AMZN, GLD, GOOG, DNDN, and AAPL but is currently flat those positions.
