Market Makeup

A rundown of various market themes for tomorrow's trade.

Despite the hefty haircut in the QQQQ's, my NASDAQ indicator is still bullish. Buy the dip is still in play until I see some O's, but I'm taking very small positions.

The BXM/SPX ratio is bearish as long as it is printing X's. Nevertheless, it is approaching resistance and a 10sma downtrend.

After mentioning HYG here, I rode today's wave up and I'm adding to it as the tape presents itself. JNK also has breakout potential.

Another bullish indicator is the rising summation index.

The first sign of potential inflation is here as the spread trend between the 30Y Treasury and Gold begins to loose momentum.

Today's action was a little hairy for a buy the dipper, and if there wasn't such a strong late day rally, I'd be pretty worried. Tuesday will be critical as further weakness will likely make my SPX indicator bearish. Smooth trading to all, and happy Hanukkah to my fellow tribesmen.

StockTwits Hot Picks

Here are the tickers making noise on StockTwits

I haven't liked AAPL for months, and only price will convince me this isn't a terrible company.

Damn cognitive dissonance... my psychology continues to work against me because I think oil is cheap, but there is no evidence of a trend change.

FMCN appears to be in trouble, and remains a short candidate.

SINA is another Chinese company taking it on the chin. Nothing pretty for the bulls here.

At the risk of revealing more cognitive dissonance, SLB looks like a good short candidate here.

I'm more interested in buying fixed income ETF's like HYG and JNK than getting long any of the above. I'd buy oil if it would just stop knifing lower every 2 hours. Short was the way to play the day, but buying the dip isn't dead yet (I think).