Stocks fell across the board as the continued talk of oil prices was enough of a reason to spook buyers away, according to the media talking heads. The SP 600 fell .6%, the Nasdaq fell .4%, SP 400 fell .4%, and the SP 500 fell .2%.
Volume was lower on both the Nasdaq and NYSE, signalling that sellers were not in force and that this was simply an abscence of bidders. Breath was negative 5.5 to 3, so the internals did look a little worse than what the indexes showed. However, almost all of the red on my screen was marginal downticks. Not the stuff to scare you for an impending selloff.
As earnings keep coming out it appears that things are going well for most companies. This is especially true for leading stocks. So far, according to Zacks research positive earnings are leading misses by a 2.2 to 1 margin. And for sales and revenue the positive is beating the misses by a 1.5 to 1 margin. This should continue to be positive for stocks as more earnings are released.
There is still a fair amount of nervousness and skiddishness (not a real word; like truthiness) among traders I know. Most want to sell on any uptick. And I have a lot of traders asking me if it is OK to buy stocks that are so extended I am not sure why they would want to buy them other than the fact they here about it so much they now want it. So to me it looks like plenty of people missed the move, are late getting in it, and once they are now in it think they should sell on any uptick. That along with the still bearish enviornment in the media and chatrooms shows me that there is still room to run.
So let's keep crying about high gas prices, complain about everything we can't control, and try to bad talk everything we can about this administration. If you foolish CNN watchers and bears keep doing this for me, I can look forward to another two to three years of more rallies. Just like the previous three. Keep it up bears!
New Swing Longs: RSAS GSOL PRVT -- For more info on longs go to Investors Paradise.
New Swing Shorts: NONE
Longs Outperforming Market(number is % gain since purchase): ERS-417 BOOM-476 MFLX-204 ASF-222 TGC-176 LCC-104 NXG-156 VGZ-107 CLG-116 LMIA-104 RMBS-32 BEAV-64 TTES UIC-65 NVDA-93 LTM BWLD LRCX-39 NTES TRAD-59 ROK-32 IKNX RNWK IVAC-25 CLZR-69 NTAP ZEUS-76 MTU PNRG-70 CIB-43 APAGF ASVI FTK IHS-46 KEX-40 SPWR-42 BWP RUTH TGE-38 PEIX-83 IIP-65 STKL-43 HEC NVD BGO-71 SYKE ECOL-38 ENER-27 RADN-31 ANO IGT IONA SFE SATC-37 AXE-33 UBS-28 WST GNA-28 SWIR-42 CHRK SIM-35 CTZN FC-36 LONG VLG
Shorts Outperforming Market: NONE
Stocks On Radar Screen: TZOO ZVXI SFUN CAMT
These are some selling examples for readers.
Selling The Rest: FDRY-11% SCHK-12%
Taking Some Small Profits: MSPD SLAB.
6 comments:
Josh,
If this is a stupid question, I apologize in advance. I've been looking at some of these IBD stocks that have had huge moves in the past two years - ERS, NGAS, NGPS, TZOO.(There may be others I am missing - I'm only a two-year "veteran") I believe all of their major runs began when they jumped into the top spot on the IBD 100, and their low floats created a momentum machine which kept them going for a great ride. Does this make sense or am I way off base here? The reason I ask is because I was looking at IFO today, and if it can get above $15, it should go to the second or first spot on the list this week due to its 99 EPS and 99 RS. It has a market cap of only $83 million. Does this idea make any sense, or do charts always have the last word? Obviously it would need to move above $15. I keep kicking myself when I didn't buy ERS around $15 thinking the same thing. Thanks for any thoughts. I enjoy reading your blog.
No problem, Mac. But, yes, you are way off base. Another silly conspiracy theory.
Those stocks make IBD ranks because of the companies (not IBD) earnings and sales growth. You can't just be put on an IBD list.
Do you know what the readership is of IBD? Trust me it is not big enough to have that kind of an impact unless the stock was the real deal.
I have heard a lot of market conspiracy theories but this one is new to me.
I suggest before you EVER come to a conclusion about something you do the research on the product. IBD was started by a man that had ONE clear mission: to make EVERYONE a successful trader.
Does anyone know how long ONeil ran IBD without making money???? Any guesses?
Try 20 years. Is that a product with an alterior motive. I think not.
Great luck out there and I hope this answer helps clear things up a bit.
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Thank you, Ron. I want to thank you for thanking me. I appreciate all nice comments. It is very nice to hear from people.
Keep reading Ron and I promise you will become a better trader.
OMG! I just went to your site bullish babe. There is no kidding about your name.
My gosh heaven does exist--I already knew it did! lol.
A beautiful women that trades stocks.
xoxoxoxo right back at you!
Hey, Josh, thanks for your thoughts. I wasn't trying to suggest that IBD or William O'Neill was trying to run these things up or benefit from their run ups. I wasn't trying to present a conspiracy theory or anything like that. I like IBD, use it religiously, and have read and own all of O'Neill's books. I was just trying to see if IFO could react the same way if it would earn a spot near the top of the ratings, as some other stocks have seemed to. Being in the list seems to give some of those stocks more visibility IMO. That's all. Thanks for the response though - I appreciate your honesty. I'm still learning here and you have helped in that respect.
Ah, I am stupid. LOL.
In that case, lol, you are correct. Yes, IFO could get a pop as that does indeed seem to happen.
IFO will be a new long for me tomorrow. Beautiful setup.
You are already ahead of the game if this is your second year. Great eye.
I also apologize for insinuating that this might be a conspiracy theory. I think I read too much into it without having the background info on you that you have given me.
In the chatrooms I monitor I hear some crazy stuff about IBD that is completely false and thought maybe this was something from someone who did not have sufficient background in IBD.
I stand corrected and apologize. I will say it again, if you like IFO here, you are well ahead of the game. I love IFO here!
No problem Josh - I also apologize for any confusion. Yeah, I don't know what I would do without IBD. I will also look to IFO tomorrow as a possible long. Cut loss below 50??
Thanks again for all of your work - it is appreciated by many.
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