While Harry spends time arguing with Lloyd in the clip, below, that you can't triple stamp a double stamp, I would add that you can't buy a fourth gap higher in a row. Granted, we faded fast and I would guess the only real buyers might come in if we breach $193.20 on the upside in the SPDR S&P 500 ETF (SPY), but even I believe a pop there would be short lived, and worth fade consideration.
There are pockets of weakness out there. The biggest, in my view, is the U.S. dollar. The ETFs surrounding the greenback still looked poised to head lower, after a small bounce. Bigger names like Marriott International (MAR) and AutoNation (AN) are showing signs of exhaustion after big bounces.
If you search hard enough, you can find groups of names struggling, here, even as the market bounces. Look at the daily charts on names like Ulta Salon Cosmetics & Fragrance (ULTA), Retail Properties of America (RPAI), Quidel (QDEL), iRobot (IRBT), CVR Refining (CVRR) and Calumet Speciality Products (CLMT).
Although these stocks are struggling due to specific issues, they are still struggling.
If you were a recent buyer of Twitter (TWTR) post earnings, and you aren't grabbing some profits or at least partially hedging your position here, then I must question your sanity a bit. There was a huge turnover on earnings and while we have investors in the stock and folks owning from higher levels, don't fool yourself into thinking there aren't traders poised to take profits on the name, as well.
I think we saw some FANG money turn over into TWTR and although I still like the idea of owning some upside in this name, unless you have a combination position here, I would reduce my exposure temporarily.
Lastly, watch Arista Networks (ANET), which is reporting after the close, today. The reaction here should give us an updated feel on the sentiment around high-growth, former-upside-momentum names. I'd love to see a beat down in this name, so I could get involved on the long side at lower prices, but after Cisco Systems' (CSCO) strong results, I'm cautiously optimistic going into the number tonight. If I hadn't give up lottery ticket earnings plays for Lent, I might take a stab at a few $65 calls, here. Instead, I'll watch for a long play on any negative overreaction in the name.
