If There’s Buying Demand Out There, it will be Seen Today
Another day of hedge funds meeting margin calls. Yesterday (and the last hour of Wednesday) was about selling the winners and covering the shorts on most beaten down stocks. This led to the solid defensive companies getting sold and the junk being covered (see symbol XONE as one of many possible examples). This same scenario played itself out in the summer of 2007 and created incredibly short-term opportunities.
Last week’s heavy selling in technology has played itself out in missed earnings in some very big names; Google is the latest example. The good news is that yesterday morning sell-off in the market was reversed. If there’s buying demand out there, it will be seen today. Otherwise it may take a few more days to clean everything up for the short-term.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: QQQ