Morning Market Thoughts
Good morning. We’re looking at a weaker opening today as traders wait for direction from Janet Yellen — do we buy or sell? The Chair is speaking tomorrow at Jackson Hole, though one of her colleagues, Esther George of the Kansas City Fed, has said that she thinks its time to raise rates.I have not yet checked the Fed’s Facebook page to see if there are any clues on their posts. If you have a facebook account, you might consider checking it out.
Mylan (MYL) remains in the news after the CEO appeared on CNBC this morning to address the torrent of negative press on the high price of EpiPens. The issue is a bit more complex than “just another greedy drug company fleecing the public.” But honestly, I don’t care enough about it to do any research for the simple reason that I can’t do anything about it. One of my immediate family members always carries an EpiPen for a severe allergy to hazelnuts. So I can tell you first hand that they are expensive — and you do need several of them. But at the end of the day, this is stock-specific issue for us , and the stock is up this morning.
I think it’s an opportunity to buy the stock, with a stop below $42.78 (which was yesterday’s intraday low). This is a big news story this morning (as it was yesterday). But by tomorrow, no one will care because we’ll be thinking about the Chair.
To you triple ETF gold traders, the triple ETFs start trading at their split-adjusted prices today.
$NUGT – $21.40
$JNUG — $19
$DUST — $36.19
$JDST – $30.50
These prices are a lot closer to each other than they used to be, so be careful if/when you trade them. Make sure you’re trading the ticker that you intend to be trading. Sounds silly that I even have to bring this up, but mistakes happen.
I can’t stress enough that this is an edgy market. I don’t think The Chair is going to say anything earth shattering, but you’ve got to look at the state of the market. Stocks have been trading sideways for more than 30 consecutive days without any kind of meaningful move. So the average cost basis of short term traders — both bull and bear — is in a very tight range. When this type of squeeze happens, the resultant move can be swift. But you’ve also got to consider whether there will be truly anything new in terms of Fed direction after tomorrow’s speech. I don’t think there will be anything new, but my opinion doesn’t matter. I observe, and I comment (sometimes intemperately). I do not influence policy.
Place your bets. 😎
Dan
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