At the low today, the Dow was -371 points off last week's high. That is not bullish. The Nasdaq closed at a four-week low and the Nasdaq 100 closed at the lowest level since March 11th. It appears the market has finally begun to roll over.
Amazon, Baidu, Linkedin and Expedia all posted strong earnings beats after the bell and shares soared in afterhours. Amazon was up $75 in the afterhours session. Linkedin gained +8. Expedia gained +11 and Baidu +8. Unfortunately, the Nasdaq futures are down -4 as I type this, suggesting the market may open lower instead of higher. The S&P futures are also down despite those individual gains.
The Asian markets opened lower after the drop in the U.S. markets. Japan's Nikkei was down -3.66% last night after the BOJ failed to modify its monetary policy. The Nikkei is closed tonight for a holiday.
While anything can happen before morning, it appears the market has shaken off the afterhours bullishness and is turning negative. After today's -210 point Dow drop and -58 on the Nasdaq, any further declines could be aggressive.
I do not believe we should add any additional risk tonight until we see what Friday brings. There is always another day to trade as long as you have capital in your account.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays