No matter how you want to word it mother market kicked off the new year with some sass rolling on Bob The Bear and his unsightly friends. While most of the gains rolled in the first hour or too there wasnt too much to be displeased about the action today. Looks like the dip to end the year gave the market just enough of a breather to to work of its overbought conditions and put some gas in tank.
It seems that most of the market and many traders took off the last two weeks to celebrate their first year of victory in many years (see most people are not in a constant state of victory as myself) Its probably been many of moon since Harry the local Fidelity Magellan peddler has been able to go home and night strut into his bedroom and tell his pretty wife that Peter the PoolMan is no longer the man of the house (and in her heart!) ….you could see the mad dash to put some cash back in the game hence the China Ding Dongs, independent oil & gas, small/micro caps and high beta names off running. Im interested to see if that continues. If you were making money you were probably rolling in these sectors.
I personally didnt trade too much as I wanted to observe the action and see how the action would be for the new year. I did take small positions in $csgh $best, $ngas, short $kndi
I did make a very eggregious mistake in trade management today in $cdii a stock I have traded for years and have held for 5 months now and sold it premarket 10 minutes before it started a 55% percent move. It cost me some big money……But we are never going to speak of it again!
The market still looks in strong shape. We worked off the overbought condition and lot of sectors breaking. The charts look the same in most of the sectors. Everything is breaking out of near breaking out.
Oil & Gas stocks all have similiar charts that are about ready to go or at that breakout spot
for Small Cap Oil: $gst $mpet $pdc $rame $exxi $bexp $keg $nog —all these look good
Mid/Large Cap : $str $atls $bry $kwk $geo $oii $cnx $spn —–could cut loose tomorrow
All the charts are pretty much the same….Oil is super overbought so trade quickly the breakouts instead of swingtrade a stock.
Other than that I have a bunch of stocks on my radar that look like they could bounce back from tax loss selling that also have big short positions like $ncs. I will slowly start adding to when I see some movement.