The first half of 2014 has almost become a faint memory. The last few weeks have been amazing for those that were on the right side of the market. The bulls are having a party and the bears have once again proven that being stubborn only hurts themselves. However, as a participant in this recent run-up I want to to remain grounded and not let my recent performance cloud my future judgement.
Taking in some inventory we had a bullish week with the IWM outperforming both the SPX and QQQ. Although I can find and name divergences that can refute the bullishness of all the indexes closing near highs, I’m not going to waste mine or your time. Until the divergences show themselves in the price action the trend is up and pull-backs are buying opportunities. When that changes, I/we will shift strategies.
We are a getting back to overbought territory based on stocks above their 50-day moving average; however that is not a reason to short. We got to these levels at the beginning of June and grinded sideways while working it off. Furthermore, even if the SPX takes a bit of a rest that doesn’t mean that the QQQ, IWM, XLF, IBB etc necessarily will. 
Next Week: I intend to look for more leadership in the IWM next week and possibly for it to reclaim previous highs. Mostly though I will concentrate on individual stocks as many have been providing huge returns in a short time span, especially with options. Energy, healthcare, solars, semiconductors and select tech are showing enormous strength and there are more than enough good looking set-ups to going into next week. I am also interested in financials as I think they have some more upside ahead. Granted some names may be overextended and need to consolidate, but as long as their trend stays intact there is no reason to shy away and especially no reason to short them.
Some stocks to watch for the long side: JAZZ, BIIB, CRM, FSLR, CSIQ, JNJ, GMCR, SPWR, XOM, PSX, JPM
If you are looking for some great trade idea, real time option trades, open interest analysis and education check out a subscription. Check out the testimonials as well.
That Was So 2013 Yo
The first half of 2014 has almost become a faint memory. The last few weeks have been amazing for those that were on the right side of the market. The bulls are having a party and the bears have once again proven that being stubborn only hurts themselves. However, as a participant in this recent run-up I want to to remain grounded and not let my recent performance cloud my future judgement.
Taking in some inventory we had a bullish week with the IWM outperforming both the SPX and QQQ. Although I can find and name divergences that can refute the bullishness of all the indexes closing near highs, I’m not going to waste mine or your time. Until the divergences show themselves in the price action the trend is up and pull-backs are buying opportunities. When that changes, I/we will shift strategies.
We are a getting back to overbought territory based on stocks above their 50-day moving average; however that is not a reason to short. We got to these levels at the beginning of June and grinded sideways while working it off. Furthermore, even if the SPX takes a bit of a rest that doesn’t mean that the QQQ, IWM, XLF, IBB etc necessarily will.
Next Week: I intend to look for more leadership in the IWM next week and possibly for it to reclaim previous highs. Mostly though I will concentrate on individual stocks as many have been providing huge returns in a short time span, especially with options. Energy, healthcare, solars, semiconductors and select tech are showing enormous strength and there are more than enough good looking set-ups to going into next week. I am also interested in financials as I think they have some more upside ahead. Granted some names may be overextended and need to consolidate, but as long as their trend stays intact there is no reason to shy away and especially no reason to short them.
Some stocks to watch for the long side: JAZZ, BIIB, CRM, FSLR, CSIQ, JNJ, GMCR, SPWR, XOM, PSX, JPM
If you are looking for some great trade idea, real time option trades, open interest analysis and education check out a subscription. Check out the testimonials as well.
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