The market has traded in the negative all morning following the continued turmoil in the Chinese market. Futures were weak all morning after the Shanghai Composite plunged nearly 7%, as investors dealt with liquidity concerns and an anticipated slowdown in lending. China has suggested they would cut back on bank lending in coming months, essentially removing one of the stimulus packages they have added to the Chinese economy.
As a result, the Dow is lower by 92 points to 9,451 while the S&P 500 is off by 12 and is currently at 1,016. The Nasdaq is down 1.3%, or 26 points, to 2,002.
Oil is back below $70 and has lost $3.30 and is currently at $69.44 a barrel. Oil is having a hard time breaking through the $75 level and the fundamentals have turned bearish after a pop last week.
As far as trades, I will go over them tonight and the entry prices for Dendreon (DNDN, $23.25, down $0.53) which is giving us a lower entry price. September is historically a nasty month for the market but May was supposed to be as well. This year we didn’t see a “sell in May and go away” attitude but we need to hold support levels if the bulls are going to prove September will be a month to remember.