The markets were up anywhere from .6% to .1% with volume higher on the Nasdaq and lower on the NYSE (However, I notice that IBD says volume was lower on both exchanges). The breadth was almost 2 to 1 positive so it was a decent day overall coming from yesterday's selloff. The strength in Gold and Metal stocks was very nice and those charts continue to look fantasticly bullish for the intermediate term.
The markets are still in a short-term downtrend but looks more and more to just be consolidating, from the previous uptrend, on a sub-intermediate time frame. The upcoming window dressing should start soon and that should be bullish for stocks. I would like to see the market selloff going into January to help build up the bearishness for a real attack on new highs in the new year.
There was not a lot of action today on the indexes and I doubt there will be too much more before the new year begins. However, the upcoming days should be intersting, none the less. But aren't all days in the stock market interesting?
New Swing Longs: DROOY CPST ENER
Longs Outperforming Market: GMXR-185% ESLR-56% REGN-52% MNG-45% AUY-43% MCX-42% LCRD-36% GRS-34% AAI-34% BNT-29% RADN-27% VGZ-27% BEAV-25% ERS TWGP MNST VSEC SAY IDSY GBN KGC HGRD ATHR NEM IED NTO GAIA SPWR
New Swing Shorts: NONE
Shorts Outperforming Market: APOL
Why I Hate Shorting In Bullish Markets: LIN
Stocks On Radar Screen: ALY
4 comments:
Could you further explain why you picked DROOY? I see it is going to have a nice reversal, but I just want to see the reasons you chose this stock.
Thanks for your blog. Read it everday and enjoy your comments.
DROOY has a nice base forming since September. During that time there are 7 heavy accumulation days to two down days during the right side of the base starting in November. The current month of December showed a nice big accumulation day followed by very quiet trading making a very nice and round small base till yesterday. The breakout past the December high and near proximity to the November high, on high volume, made it a nice long candidate. That along with its leading sector status made this one an easy long. BOP looks nice too.
BTW, what reversal? Did it close below yesterdays low? Did it not find intraday support and rally on higher volume, intraday? Did it close near the upper half of the daily range? If you study these questions your answer will find that this is no reversal, this is accumulation. The downticks were with no bidder underneath and there was block buyers today after it rallied past its bottom intraday range.
A very nice chart!
Thank you for reading. Aloha.
How'd you find GSIG? Have held the stock for 2 years and thought it was dead....but voila! It's coming back to life. The other folks on the GSIG board talk nothing but trash so would appreciate a non-board poster's thoughts.
Mike
You have held that POS stock for 2 yrs. Jesus Christ! If I were you I would find a new investment strategy.
GSIG was junk but has turned the tide financially. If you look at recent sales and earnings you will see why it is starting to move up. I expect a double but if it doesnt and a big seller comes in I wont think twice about dumping this lagging dog.
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