This is a 2:43 pm intraday update of Turov on Timing for Thursday, October 11, 2007.
I received an email from a knowledgeable subscriber with a likely reason for the decline. He wrote, “The Four Horseman – of the Apocalypse have taken a swing down hard after JPM put out a note that they expect lighter revs from BIDU. The four horseman of the NDX 100 (AAPL, AMZN, GOOG, RIMM) all got hit very hard with RIMM down 10% in a handful of minutes. BIDU is taking a beating as this is written, down $20. These stocks have been running on pure momentum now for weeks. The worry was bad news or a possible collapse under the rally’s own weight in these names would bring the party to an end. Maybe traders took BIDU as a canary in the coal mine for momentum stocks? The horseman are trying to get back in the saddle now. Bear in mind all but AMZN were at new life highs today. If these shares bust the NDX is very vulnerable.”
In any event, we were stopped out at SPX 1556 as that index went below that level for the briefest of moments. Oh, how I hate stops!!! – as I have mentioned many times in TOT. The SPX is now back up to 1564, less than 10 minutes later. Deep breath…
In any event, TOT daily traders are out of the position and tomorrow’s another day. I’ll email you again six hours before the start of tomorrow’s session – or sooner if circumstances warrant.
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