The markets pulled back hard today but did so on a mixed bag of volume. The Nasdaq and SP600 were down 1.3% and the SP500 was down .6%. The volume was lower than Friday's quadruple witching level so that dampens the selling a bit. But since I don't really count the volume on quadruple witching days, I will compare it to Thursday trade. And if that is the case, Nasdaq volume was lower and NYSE was higher. The volume on the Nasdaq was also below the average of the past 50 days, while the NYSE was just a little above average. So not a very traumatic day, even though those bears got loud today. Good!
It was about time to start a "real" pullback and not just the sideways action. We needed a pullback to get the bears confident this is the start to the "crash." So if you have been bearish the past 10% plus move up on the Nasdaq and SP600, congratulations perma-bears. You finally got your big bad pullback. LOL. But if you have been following the trend and making money on the "right" side, you may NOW start worrying if you want to. NOW the bears have a reason to start selling the market. They probably will not be right for very long but the bulls can allow them to have their fun for a while.
Instead of getting involved in the bull and bear debate that I see going out of control everyday in the chatrooms, just follow the price and volume action of the indexes and leading stocks. Your heart and doctor will thank you.
Primary and Intermediate trends: Up
Sub-Intermediate: Latteral
Short-Term trend: Down
New Swing Longs: KEYS DHT AIX GIGM KLIC HGRD TMO CLG
Longs Outperforming Market: RES-101% LCC-71% GGR-50% NWRE-50% LMIA-46% TSCM-45% RTK-42% ECLG-37% BSMD-32% GRS-29% CRDN-25%
New Swing Shorts: RSH CNL
Shorts Outperforming Market: BAP VRNT APOL SYMC SYD NCX WEBX
Stocks On Radar Screen: LEND AZN IHS KNOL ZL MDT TLF CAMT OTE
Disaster Of The Day: FCN. Not really that much of a disaster. Still made 1%.
5 comments:
What is your situation with GIGM? I see that the RSI is at 70.9 which is a sell situation. Do you know of any news that might bring this stock up?
Thanks for the blog. I read it everyday and enjoy it.
GIGM will probably reverse on me, like it always does after I buy it-but maybe it wont this time. I am long as of this morning.
RSI is an overbought and oversold indicator that works well in sideways markets. If GIGM is breaking out "for real" this tiem, the RSI will get overbought, rally back down to mid level, then get overbought again. Overbought is bullish in stocks breaking out.
Go check the RSI on BOOM ASF BMD RES MFLX RTSX PRLS etc., right after these stocks broke out. You can check the blog to find buy dates, except BOOM cause I was not writing then.
Thank you for reading this blog. I greatly appreiate it.
Have a Merry Christmas and Happy New Year!
I respect your comments on the current market and I hope that you're right - that this is just a normal pullback. Perhaps this is just another short leg down in our range-bound market. One thing I have seen though(or haven't seen) is the lack of nice looking charts over the past two weeks or so. My watchlist keeps shrinking and shrinking on the long side. I was curious if I am off base here and if you are seeing the same thing. To me, this would seem to be a major signal of market weakness.
Also was curious of your thoughts on a few short setups: BMHC, FNM, CAT, PHM.
Thanks in advance for your comments - I really enjoy reading your blog and have learned a lot.
I am playing in DDD and can see it gained a good percentage today. By looking at the chart there seems to be continued wealth coming ahead. When would be a good time to get out of this stock? Although I hear rumors of a deal in June which can bring it a double bagger? Do you think there is wealth for DDD ahead for tomorrow?
I read your blog everyday and enjoy your comments. Merry Christmas.
I don't have as many stocks as I did before but that is because we are late in the rally. That is normally what happens near the top of a rally. I still have plenty of stocks that are basing very nicely. Just go through the list of longs I am holding. There are plenty of stocks in good bases still. It just may take a while for them to form the right side of the bases they could be carving out now. It is holiday trading time, so the low volume will help build some bases in strong stocks. But if we do rollover, then the bases will be reset, of course. So the lack of great stocks breaking out is sort of worrisome but I am not too worried yet.
All your stocks are excellent short candidates with high volume breakdowns below recent support. Those are all nice possible short candidates, I reiterate. Wait for the breakdown though, unless you already have YOUR own plan.
Thank you for your nice comments. I am glad I am helping you on your self-empowering quest for financial independance. Continued great luck.
...................................
I can not predict the future on DDD. I simply follow the chart and do what the charts say.
If I could predict the future I would have bought TLF, DPTR, and IVAC yesterday and sold all of my SRLS two days ago. HAH!!! LOL.
So just have a plan for your current position in DDD.
Merry Christmas to you my good man!
...................................
Post a Comment