- The week thus far was uneventful as I advertised it would be on Monday.
- The moment all waited for was today at 8:30 am et when Mario Draghi would announce his euro-saving strategy. S&P 500 futures just sold off 1.4% in 5 minutes and the EUR/USD followed in favor.
- Utilities (see chart below) are giving us a shorting opportunity here for bucket 2 after yesterday’s high volume downside reversal and the shooting star candle. Stops can be placed at yesterday’s highs.
- As a reminder, our darling momentum stocks such as CMG, SBUX, NFLX and others now look awfully weak. Below see the chart of CMG…ugly begets uglier. Do not touch until valuations get more attractive. The stock still trades at a good premium over its pees from a P/E point of view.
- LULU was also one of those darling stocks up until earlier this year. At this point the stock looks to have downside to the $49-51 area and as such may be a decent bucket 2 short opportunity
