Markets started the day dull, rallied HUGE after the FOMC meeting, and then closed weaker to finish the day pretty much flat to up a little bit. Volume was higher across the board, to go along with higher prices. That was positive but breadth was negative on the Nasdaq. But on the NYSE breadth was positive. Of note, the Russell 2k closed down for the session. But it was barely down. So pretty much a normal volatile Fed day.
The Fed hiked rates to 4.25% but dropped the phrase "accomodative" from its speech. This word has meant, in the past, that more than two rate hikes were coming. With the removal of that word, the market was given a hint the hikes may be over soon. However, we still need more time to digest the Fed talk before we come to any solid conclusions of the most recent meeting.
My account fared rather poorly today. But most stocks remained in healthy technical patterns. So that is very reasurring. However, CUTR should have taught many investors, today, why you have to buy stocks coming out of fresh bases. After readers asked some general stock questions, I gave stocks like CUTR and CMTL positive comments about their companies but warned of new buys in the stocks as both were extended. This is the reason you need to buy from first stage bases and second stage bases only.
Good luck tomorrow!
New Swing Longs: NONE
Longs Outperforming Market: DCEL-222% GMXR-135% RES-102% RTSX-97% SIRF-91% MCX-73% LMIA-64% AAPL-62% HHGP-57% HITK-57% RTK-51% BNT-46% ARS-43% MIDD-41% TFR-37% LCRD-36% ECLG-33% FWLT-30% GRS-26% Q-25% ASTE AMED LIFE CHE FCN ERS BEAV NEM STJ ORA SNTO BGC PPCO IT EFJI NOVL AUY GAIA CLRK
New Swing Shorts: NONE
Shorts Outperforming Market: CECO WEBX
4 comments:
What is your opinion about MCX ? How far do you think it can go before it hits its peak? I have been following this stock and would like some extra information.
Thanks for the blog, it is VERY helpful.
I know you dont like penny stocks, but GZFX seems to good to resist. It is the only company that lets you rent DVD's and games online. What is your opinion about this?
FDG, has gone through and early base with what is so far a very interesting handle. If it finishes a handle and has a break out, is it a buy? Or would you pass this one up?
BTW, thank you for your blog I read it everyday any really enjoy it!
Nobody ever knows how far a stock will go. Analyst will try to do a price projection based on a forward looking P/E ratio with current expectations for future earnings and sales. But that doesn't guarantee it will make it to that price.
Just watch price and volume and if anything abnormal pops up start selling a little bit. If it rises, all good. If it breaks a recent support level, sell some more. If it rallies on low volume after falling on heavy volume, sell some more. Then, if you want, hold the rest until it breaks the last ditch support level; the 200 day moving average.
Thank you for your comments. I am VERY glad it is helpful.
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GZFX sounds like a great idea. Until it has steady sales and earnings growth and trades on an exchange that requires financial updates that are audited, I can not even try to deal with it.
But, I do love the idea. How many times have I said that about a penny stock company that never made it???????? LOTS!!!!!!!
If it makes it to the Nasdaq or NYSE then I am game! :)
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I really love FDG. Unfortunately, I loved it much more a long time ago. FDG is up somwhere near 900% from the bottom in 2002. While very positive, it still means the majority of the better gains have gone by.
This current base you are looking it flawed heavily. It has many more days down on higher volume in the base, there is no volume on the upside on right side of base, there was a HUGE gap down (though it did find support), and the base is sloppy.
However, if you want to buy a little and use a disciplined cut loss strategy, if it breaks out, you have my blessing. This is a great stock in a strong sector. But this stock has been "known" to the "smart" crowd for a very long time.
If you do an IBD archive search you will see many articles in early 2003 and on about FDG. So a lot of people already know about it and that in itself is enough to act as a barrier to price.
Long a little, if it breaks out. And cut your loss. Same strategy, same execution. Over and over.
Thank you for your great question. I am honored that you read me everday. That is incredible. :)
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