This uptrend appears all but dead to me on my end. However, the final nail in the coffin has not yet been finalized and it is possible this market can right this ship at some point. Unfortunately, I do not believe in blowing smoke up someone’s you-know-what and it appears that a summer of going nowhere is more than likely in the cards (honesty is the best policy). Obviously this can change with a little bit of accumulation but based on the current crop of stocks showing up in my EOD basis long scans of both quality and speculative nature you can be sure that we do not have the stuff that strong uptrends are made of. I am going to go ahead and start raising stops on any names looking a little weak and will look to start establishing more hedge positions if we continue to go nowhere or trend lower.
I continue to be involved in a whirlwind of activity on my end as I enter my final week of travel obligations. I sincerely appreciate everyone’s patience with me during this travel time (I return to Maui on 5/20). The good news is that I am clearly not missing out on much on an EOD basis as all of the momentum continues to be isolated to day-to-day moves in stocks that are in play with the day trading crowd like CCXI, MGT, and GSAT lately. If you want any kind of alpha during this period you need to focus on intraday opportunities in the morning with stocks in play (earnings, contract winners, billionaire plays) that we post on our daily morning watchlist and/or the stocks up the most percentage wise on huge volume under $10 a share preferably. If you are not, it is going to be very difficult to earn any alpha on an EOD basis in this ugly choppy and overall below average volume tape.
There are times to swing for the fences, times to trade tiny, and times to not trade at all. For most new traders, on an EOD basis, during this seasonally weak period where the overall market is confirming the seasonality not trading is probably the best option here. Study, learn, and get ready for better market opportunities. They will come around again. They just are not here right now. Have a great rest of your weekend and I will see you sporadically in the chat room on Monday.
TOP CURRENT HOLDINGS – PERCENT GAIN – SIGNAL DATE:
THIS SECTION WILL NOT BE UPDATED THIS WEEKEND DUE TO TRAVEL OBLIGATIONS.
