The Tech/Telecom book didn’t have the best of days closing down 11 basis points with the broad market closing flat. The book was especially sluggish when comparing the performance to the NASDAQ, XLK (Select Sector ETF), and the SMH (Semiconductor ETF) which closed the day up 39 basis points, 19 basis points, and 97 basis points, respectively. While Semi’s had a strong day our bigger positions GOOG and AAPL had sluggish days.
The winners in the book were RIMM and INTC. RIMM a name we were short got hammered today on tepid torch sales and we covered up our short a little early right off the open, RIMM traded down the rest of the day closing down 4.8%. INTC which was strong today on the announcement that they would be buying Texas Instruments cable modem business. We don’t own INTC but we day traded it today as it seems to be finding a level just above $19. INTC closed the day up 1.67%.
The losers in the book were AAPL, CREE, GOOG, DELL, and ELNK. AAPL was sluggish for the majority of the day and couldn’t manage to catch a bid when the market made its early rally up to the overnight highs. CREE continues to bleed lower, but the velocity is starting to slow and CREE closed the day down 28 bps. GOOG and DELL were fairly muted closing down 16 bps and 42 bps, respectively. Last is ELNK which we are short was up 47 basis points closing at 8.55 and traded the day in a 15 cent range.
It was a brutally slow day today and I hope for better action tomorrow but I think its safe to say the summer trade is in and it will be another snooze fest tomorrow. I learned something very important today and that’s to pay attention to the overnight highs and lows in a market this dull. Today we traded right up to 1080.50 with 1081.50 being the overnight highs on the spooz and then pulled in to about five handles. It very important to understand the market you are trading in and the advice I learned today is something that will be incorporated in my trading for the rest of my career.
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