Postcards: The Southwest Turnaround (Also... Why We're Red and In Cash)
Something significant happened this morning... for a company that has seen its stock price drop 25% over the last 12 months. And we're Red on S&P 500
Market Update: We’re red… and this has gone very quickly. Outflows on the SPY are very strong, and investors are advised to maintain cash for now. Pay close attention to the RSI and the MFI on the SPY and the NASDAQ. When both hit oversold, we tend to see a bounce from algorithms. As I noted over the weekend, markets were the most aggressively long on equities ever, and as I said yesterday, don’t be shocked to see the market drop even if small-caps are getting bids. Enjoy your life while this bit of volatility unfolds. Catch up on our Six Rules for Negative Momentum here.
Even energy has turned negative, which is VERY bearish. We can take advantage of this when Occidental (OXY) breaks under $60 by trading in the Buffett buy zone.
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