A busy and eventful week comes to a close, finally. The major indexes scored minor losses today but volume picked up across the board, including a HUGE swell in volume on the Nasdaq. The Indexes were all down, with the SP500 down .3, Nasdaq .4, DOW .1, and SP600 .6. Those mild losses with higher volume gives the market a distribution day. But I never really care to count these days on quadruple or triple witching. The volume usually has NOTHING to do with the day's price action. Since it existed we can count it as a distribution day, but I am putting an asteric next to it.
What I would like to comment on is how many people believe this is the leg up before we "crash". Trust me, I see this mentioned a lot in chatrooms. The Nasdaq has rallied 12%, SP600 12%, and the SP500 9% since the October follow through. So I am not sure how a sideways market means we are about to crash, especially when only one index has seen one day of selling when it closes down more than 1%. Silly bears always so wrong in bull markets. Besides, even if we do have an occasional down day of 1.5% or more and big volume, it is normal in a bull market. It is how many of those happen in a couple or few weeks time. If you see more than one in two weeks then it is something to worry about. Until you see that, ignore the retard bears, and continue to operate on the long side for the best chance of scoring BIG gains.
Are we still extended? Hell yeah. Are there negative divergences in the New High list, breadth, bull/bear newsletter, put/call ratio, and oscillators. Hell yeah. But that happens in bull markets. Those indicators are all secondary to the actual action of the index and until it rolls over I can not be bearish. Even though the indicators are suggesting too many bulls and too much complacency now.
I operate in 4 time frames: long-term, intermediate, sub-int., and short-term. All trends in all time frames are up to lateral. None are in downtrends. That tells you where the momentum is and has been since October.
As I said in the opening, a busy and eventful week has come to a close. Have a great weekend and I will see you on Monday night or Tuesday morning.
Aloha, from the most beautiful place in the world!!
New Swing Longs: DDD
Longs Outperforming Market: GMXR-153% CERS-146% PETS-90% ACR-73% LCC-71% ESLR-70% EMKR-69% CVO-58% CBG-55% HITK-54% OXPS-49% GOL-41% TSCM-38% GGR-36% LDSH-33% AUY-31% FLWT-30% Q-28% GRS-27% AAI-27% LCRD-26%
New Swing Shorts (mental note: Dont over do it, keep it small): PBCT BAP APOL VRNT NCX
Shorts Outperforming Market: ATMI
Stocks On Radar Screen: SMSC BIO NATI FADV EFD MSTR SMXC EXPE PONR OFLX SCMR AVN CH DAKT MDM PRKR
6 comments:
Any opions on the chart for HOMS? Looked like a nice breakout on the 6th w/ a lower volume retracment to me.
I went long HOMS on the first of the month, if my memory serves me correct. I really like this chart, I love the fundamentals, I like the group strength, and if it keeps going up I will like it more.
The pullback is nice and orderly and a buy would be logical around the $5 area. Just make sure you have a sell plan, before you enter the trade.
Good eye! Just a little late spotting the breakout.
Have a great weekend
GRP is having a light volume pullback. First off, do you approve of this stock, and secondly, if it is a buy, is it a buy at the 20 DMA or the 50 DMA?
Thanks so much I love your blog!
How much do you think DDD can swing up to? I am guessing around 5.20 if it has a good run on Monday?
I enjoy your Blog very much and it provides many ideas for my own stock resarch.
I presume that eventually you will charge a fee for all the work that you do. That being the case, don't you think an accompanying spreadsheet of the performance of all of your selections would be appropriate? After all, you've made hundreds of selections and listing the best performances to date (each day) really doesn't portray or represent accurately the the performance of all the many, many selections you make.
Best Wishes for continued success!
GRP- This stock is way too extended from its first base and looks to be in a 4th base. Way too late. But I still like the stock and think if you want to buy at the 50 dma that is cool. Just make sure you cut your loss with a close below that line.
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DDD-Oh my goodness. I don't buy a stock at 4.80 and only expect it to go to 5.20. I expect doubles on ALL my buys. It goes up and I hold it or I dump the stock. Holding stocks more than one day is the only way to become successful in trading. Not one day pops and then move on.
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I will be running a shitload of money pretty soon so that is true. But, I dont need to make a spreadsheet for free, right now. Everyone can see my pics and everyone should know my sell rules (if you dont, you can search the blog). I constantly sell stocks on the way up and I cut losses imediately if it doesnt work right after the buy.
I only publish what is up A TON because that is what is important. All the silly 2%-10% cut losses will take up too much of my time for FREE.
If you know who William J ONeil, Gerald Loeb, Dan Zanger, Tony Oz, Nicolas Darvas, and Jesse Livermore are, then you know how I trade.
The little cut losses are everywhere. It is not an efficient use of my time listing all my partial sells and cut losses. Hopefully, you have the rules down and can tell when and where I would partial out or sell outright.
When I start running these accounts that have been offered to me, I wont be able to blog anyway. I will be registerd with a Series 7,63, and 65. So we will see what happens with that. I dont know if I will be allowed to keep writing on this or what.
Thank you for the great comments. I am very happy I am a part of your daily market research. I wish everyone great luck and have a Merry Christmas!
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