RealMoney Midday Bulletin: Fading Out‏

oldpigwang

Small-Caps Starting to Roll Over
Small-Caps Starting to Roll Over
Timothy Collins
The outsized moves continue, and the range remains in place. A very early push was turned aside quickly and easily by the bears today. However, bulls didn't just roll over and managed to keep the averages in the green for the most part. Even though summer trading has "ended," it really hasn't yet. There is an asterisk on post-Labor Day trading. It is really post-Labor Day, post-Jewish holidays, as the volume has been atrocious. If I'm looking for a top other than in the REIT space right now, then I'm looking in the direction of small-caps. There is some evidence of a top or a rollover starting on the Russell 2000 iShares ETF, which could signal a move down to around $61 per share. This is our largest position currently in the InterETF strategy, and even though it is still range-bound, it is tilted to benefit on a bearish move much more so than on a bullish move because of the current action.


Fading Out
Timothy Collins
You wanted a fade? Well, you got a fade. At least we've seen a quick pullback to support off of opening highs. I've seen multiple notes about the claims "estimates" from nine states, and a reader was quick to point it out this morning as well. Does it matter? It doesn't seem to matter for today's trading, but RealMoney contributor Tim Melvin beat me to the punch that it will matter when revisions roll around. This could set up for a nasty revision next week -- but will it even matter then since, by then, it will be "so last week"? Move over semiconductors, you are being replaced on the most-hated list by LED exposed companies. Alright, so these players fall into the semiconductor space but, as a sub-sector, this is so hard to own right now. Cree is getting slammed again this morning ($50 gave way, and shares quickly fell under $49).

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