Shorts Have a Rough Day

 | Jan 15, 2013 | 4:27 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

aapl

It was a "don't short a dull market" day. The old saying worked well today, as we very slowly drifted upward after a poor start and then accelerated into the close. At one point, the Nasdaq was around 2 to 1 negative, and it ended the day with about 1,300 gainers to 1,100 losers. What was particularly impressive is that the Russell 2000 (IWM) small-cap index continues to lead. Money is flowing into the small names while the Nasdaq-100 lags, primarily because of Apple (AAPL).

The action today is a good example of what I've been writing lately about not trying to anticipate weakness. Trying to short on a day like this is an exercise in pain. We have seen this happen so often in the last few years. It just hasn't paid to fight the trend, regardless of how compelling the short thesis may be.

I have to admit I was surprised by how well the market recovered intraday. I made a few poorly timed sales this morning, but I did add a few things late. I have no desire to fight a market that is acting this way, even though it did put me to sleep for a while.

Tomorrow we have some earnings reports and hopefully some fun and games. Have a good evening. I'll see you in the morning.

Columnist Conversations

We are currently testing the key resistance decision in ICE. Do not consider an entry without a trigger!! ...
Is this the biotech revolution or the biotech bust? View Small Cap Biotechs Like Never Before: Transparency is...
EA reported June revenue of $775 mlm vs. $714 est. much better than expected. EPS of $0.19 blew away the St es...
BIDU still has some higher targets, but it's a good idea to TRAIL UP stops when you EXTEND the prior swings. ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.