The market decline today was broad based but minimal. Was this just a hiccup or a warning of things to come? The advance decline ratio was 4:3 in favor of decliners. That is not a material imbalance but it also came on the highest volume of 6.83 billion shares since August 5th. The small, mid and large caps were all sold equally suggesting the portfolio managers are ramping up their restructuring as we get farther into September.
The ECB failed to extend the current QE program and that shocked analysts. With the Fed meeting on the 20th we may be reaching a tipping point where stimulus reverses from ultra lose to something a little tighter. The Chinese market is at a 10-month high and that could keep the PBOC from announcing any new plans. All of these factors count and while each is just a brick in the stimulus wall, a few of those bricks could be ready to crumble and it would weigh on the U.S. markets. I am not recommending any new plays until we see what Friday and the weekend headlines tell us.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays