Good morning Folks
Over the weekend I stated that the market rarely does what everyone expects. When a trade become so blatantly obvious it usually does the opposite. Well this is one of those rare moments where the "obvious" play is exactly what happened.
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The IBB was overbought and the Biotech sector was due for a pullback
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So now the question becomes, is the worst of it over or is this just the beginning?
The other indexes did some technical damage as well but nothing so damaging that we need to start panicking. The long term trend remains in tact but it never hurts to book profit in your winners and cut losses in your losers to build a nice cash position in case this becomes a more substantial correction.
There really was no where to hide yesterday >>Transportation, Semiconductor, Tech, Financials, Solar, Retail, Dining, the only sector that did fairly well was the beaten down oil sector. After yesterdays sell off we could see a bounce but I would be cautious of piling into anything. If you want to take a quick scalp that is one thing. I have no intention of loading up on a bunch of swings or long term holds. Things have technically changed and caution is advised.
Saudi Arabia and Allies have started bombing targets in Yemen which has oil on the move higher. We talked about many of the oil names looking like they may have found there bottom if Oil continues to climb we could continue to get some relief rallies in the sector. Gold and Silver continue to look strong and may be an area to pay close attention too.
Breakout plays are likely going to struggle so be careful out there and remember there is nothing wrong with just sitting on the sidelines in cash.
Stocks on my Radar
MDR already a swing looking for the 4 dolla holla, PACD nice daily also a 4 dolla roll, OTIV possible continuation off earnings and positive court ruling yesterday, UWTI for day trade if it sets up after the open, TVIX looking for continuation already swinging it and scaled out half to lock in profit, CNAT pr big gapper off of phase 2 data wait for a setup don't chase it, CERE penny play gapper nice PR be careful just approved a reverse split, WGBS thin one pr gapper wait for setup, MAGS earnings winner another thin one wait for a setup,
CNBC in the News
 | IN THE NEWS TODAY |
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| Now may be a good time to start normalizing monetary policy, St. Louis Fed President James Bullard said in a speech. The economy has normalized, he added. (Reuters) |
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 Atlanta Fed President Dennis Lockhart joins CNBC's "Squawk Box" at 8:15 a.m. ET to give his views on the future for interest rates and how jittery markets should be interpreting the central bank's intentions. |
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| American warplanes began airstrikes against Islamic State positions in the Iraqi city of Tikrit, aiding a three-week offensive by a coalition of Shiite militias and Iraqi security forces. (NY Times) |
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| An investigator in the Germanwings crash said evidence from a cockpit voice recorder indicated one pilot left the cockpit before the plane's descent and was unable to get back in. (NY Times) |
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| A series of tornadoes ripped through the Tulsa, Oklahoma-area, killing one person and injuring several others, while leaving a trail of destruction and knocking out power. (NBC News) |
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| Apple (AAPL) and its Beats music service are working on a subscription streaming service that will have neither a free tier nor a lower price tag than its competitors. (NY Times) |
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| Microsoft (MSFT) announced it would require many of its 2,000 contractors and vendors to provide their employees who perform work for the software giant with 15 paid days off for sick days and vacation time. (NY Times) |
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| A lightweight drone with the wingspan of a jetliner, beaming Internet access, is the centerpiece of Facebook's (FB) plans to connect with the five billion or so people it has yet to reach. (NY Times) |
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| BY THE NUMBERS |
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| Today's only economic report comes from the Labor Department, which releases its weekly jobless claims report at 8:30 a.m. ET. Economists expect 290,000 first-time filings for unemployment benefits for last week, virtually unchanged from the prior period. Meanwhile, the Energy Department is out with its weekly look at natural gas inventories at 10:30 a.m. ET. |
| Food giant ConAgra (CAG) is among the companies out with quarterly earnings this morning, along with consulting firm Accenture (CAN) and apparel maker Lululemon (LULU). Today's after-the-bell earnings reports include videogame retailer GameStop (GME) and housewares sellerRestoration Hardware (RH). |
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| STOCKS TO WATCH |
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| The world's largest oil services company, Schlumberger (SLB), has agreed to a penalty of more than $232 million and one of its subsidiaries will plead guilty to trade sanctions violations, ending a yearslong Justice Department investigation. |
| American Express (AXP) may cut jobs if it can't keep clients who got their Amex cards through a relationship with Costco (COST). The 16-year deal between the two parties will expire next year and Costco has already signed a deal with Visa (V) and Citigroup (C) to replace the American Express deal. |
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| Global apparel marker PVH (PVH) reported adjusted earnings that beat expectations, but revenue fell slightly short. The company behind the Calvin Klein and Tommy Hilfiger brands warned on full-year results, blamingnegative effects of the strong dollar. |
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Seeking Alpha
Notable earnings before today's open: ACN, CAG, CMC, CMGE, CVGW, DANG, FRED, LULU, MEA, NEOG, SCHL,SIG, SPCB, WGO
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