Though it seemed slow, which it was overall, the Nasdaq still traded more shares than yesterday. You could have fooled me, though. Anyways, the markets did not do much today, barely moving .10% up or down. The action in individual stocks however was different today than yesterday. I had to sell down my nicest charts from the rally today and have reduced more positions today that have ran up too much short term.
Small oils were weak today and Gold was strong. Could that mean, with gold rising, that we are going to have inflation? I would think it would start showing up in the data soon, seeing the short and long term bond yields finally start rising. But I am not sure if we are going to get a lot of inflation. At least not the kind seen during the Carter administration. Also, I would think this inflation would cause the Fed to keep hiking rates and that can only be good for stocks. Why? Because, history has shown, since 1993, every time the fed hikes rates stocks rise and when they reduce rates stocks fall. Why? Because the market does the opposite of what you think it is supposed to do.
However, currently, the market is giving poor risk/reward ratio for new positions. Charts are getting sloppy, stocks are slipping a little, and some stocks are going parabolic. This is leaving few stocks at safe buy points. A pullback in the markets would help create good bases for the next round of leaders to break out of. If we will get one, the way this market is acting, I dont know. However, if you must go long now, keep a tight cut loss and dont "load the boat."
New Swing Longs: RGLD ABX ECIL ECTX ANSS ORA
Longs Outperforming Market (up 5% or more): NTES ANX ENG BMD TGE ELOS CTRX GOLD
New Swing Shorts: FRP NLC VNUS WMI PXD
Aloha!
No comments:
Post a Comment