John Carter Analysis: Market Overview and Position Update

In today’s market update, we start with a look at GPRO which looks like it's getting close to a blow-off top. We've seen a massive move on huge volume that is driven mainly by short covering and not valuation. Implied volatility is very high on the name, so the way to play it is either through equity or deep in the money options. In the indexes, the Nasdaq had a volatile month, and heading into the new quarter we typically see buying but it is not guaranteed. The Russell is suggesting that long term health of the market is in question, but we are overdue for a bounce which could come imminently due to a combination of the market being oversold, beginning quarter buying, and employment data on Friday. If things start to get ugly, however, the FAZ is an ETF that is setup for an upside move and provides protection against a correction in the financials. TZA is the inverse Russell and is also an effective hedging vehicle should volatility pick up. Reviewing our individual positions, KO still looks great, and CHRW as well on longer-term time frames. FSLR has triggered to the downside and we recommend unwinding any existing positions. We're still watching the Yen, which continues lower, and when it bounces should add more pressure to equities.