This market just doesn't want to go into easy mode these days. Despite the fact we are in a holiday trading week, both the volume and volatility of this market are right up there among the higher days we've seen. Of course, there's one and a half days left in the week and we have to literally laugh off any potential heavy action that's yet to come. Today's action is definitely better than yesterday's and bulls held their ground from last week's low. Although we are encouraged by market's late day action and particularly action from some of the high profile tech companies, unfortunately the action isn't spread evenly among all the names on our watchlist.
Shippers, this group just can't seem to get a bid whether market has a rebound or not. We are definitely staying away from this group and unless something really dramatic happens with the sector, we aren't likely to play this group for a while.
Solars, since most if not all of the names in the group have released their earnings already, we don't think there's that much to look forward to in the short term. It's troubling to see that none of the solar names wanted to participate in today's late day rally. There were also numerous upgrades on various solar names last little while which didn't seem to help to lift the group at all. However, if we get a meaningful rally from the crude oil, this sector will definitely get some action again. Until then, we'd stay on the sideline for the most part unless a good intraday opportunity comes up.
China Plays, we have just one last reminder. Just because some of the stories were so good a month ago doesn't mean people are still paying attention to them. The group's currently in what we call a "diseased" mode and last thing we wanna be doing with them is to play a rebound. Untill both the Heng, the Shang and major Chinese ADRs here all get some good action going, we'd stay away from the group completely.
Right now, we are doing exactly what most others are doing and that is sitting on our hands for the most part. The further away this market moves from last week's low, the more inclined we are to get back into this market. For now, we are just playing some intraday points from the likes of RIMM AAPL GS etc.