Major averages fell yesterday on higher volume, but managed to close in the top half of their trading ranges. The Dow, however, is now back below 20,000. Yesterday was the worst sell off since the elections. We will have to see how well stocks and indices recover. Otherwise, it is possible the fears about immigration policies being a bad omen for trade as well as delays in tax cuts could push the market into a correction.
Z, CUDA and MYOV both broke below support on higher volume in yesterday's trade so could have been sold.
Comments on SS Target Stocks: ATVI should be covered should it break above its 200-day line. EA should have been covered as it broke above its intraday high in yesterday's trade. Keep in mind that EA is expected to announce earnings tonight after the close. We would watch for any opportunities that might arise on movements following earnings. For now, we think that since ATVI will probably move in sympathy to EA, it is best to wait for EA's earnings before trying to work these shorts into any continued rallies. We will be monitoring these closely tomorrow.
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