Thursday, March 23, 2017

Indices Hold Ground, Stocks Continue To Bleed

There was a pause on the downside action yesterday, the small caps were flat, SP500 up 4 points, and the Nasdaq led by $FB, $AMZN, $AAPL, was up +.48%.

Breadth was still on the negative side, while the indices were flat to up 1,426 stocks registered new 1-month lows.


Typically, spikes in 1-month lows lead to short term bounces that are followed by a lower low on the indices.

I have a few names on my watch-list today; $LJPC, $AGN, $BRKB, $HAL.

$LJPC on 2/27 announced positive top-line results from a phase 3 study, the stock surged 90% the next day. What's interesting is that five different insiders picked up 105k shares in the open market after the stock made the huge move. I like this stock if and only if it can get through yesterday's high.


Oil was the first sector to lose momentum, the sector peaked in December and has pulled back a little more than 10%. Over the last few days, the downside momentum has eased and a few oil names like $XOM, $CVX, have shown some stabilization. I mentioned $XOM as a possible character change play with the 10-20 day moving averages now acting as support after acting as resistance for 57 trading days. $XOM also sport a decent yield.


But today I'm also focusing on $HAL, the stock has pulled back to potential weekly support, and on the daily, it has been down for 5-days in a row. I have an interest in the stock if it can get through yesterday's high.


$AGN and $BRK.B two stocks down multiple days in a row that are down to potential support levels, I have an interest in both stocks if they can get through yesterday's high.


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Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.

DISCLAIMER

Tuesday, March 21, 2017

Indices Barely Down, Stocks Murdered

The SP500 went 109 days without a negative -1% close; we ended the day down -1.24%.  Now, -1.24% does not seem like a lot. However, individual stocks were murdered today. 526 stocks were down -4% or more today, the highest number since 9/9/2016. Spikes in stocks down -4% or more usually lead to a short-term bounce, but then it is typically followed by a lower low on the indices days later.


We also had 1,121 new 1-month lows, 558 3-month lows, and 572 new year-to-date lows. The measly -1.24% loss in the SP500 doesn't tell you a quarter of the story.

This is how the SP500 sectors fared today;


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Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.

DISCLAIMER

Thursday, March 16, 2017

The Fed Is Out Of The Way

The Federal Reserve raised rates by a quarter of a point, and the market reacted well to the news. The biggest laggards over the last couple of weeks were the biggest winners yesterday; Small caps and oils.  The bank stocks lagged and that probably was due to Yellen's comments about future rate hikes, they are not written in stone.

$WTW, $EXAS, $NTES, $QTNA, $LITE, $GS, $FIVN,  are the stocks on my watchlist today.


We have an interest in these stocks if and only if they can get through yesterday's high plus .10-cents, that is typically where our buy stops will be. This single criterion will narrow down the list to a handful of names unless of course, the market is super strong. You can also narrow down the list by float, price, sector, or whatever your preferences are.

These ideas are what we consider swing trades that can last anywhere from 1-10 days. Most stocks if not all go through momentum burst that lasts 1-10 days, that momentum burst is what we look to take advantage of.

SIGN UP HERE FOR OUR STOCK PICK OF THE WEEK.


Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.

Monday, March 13, 2017

Seasonally Strong Week

The big news of the day is Intel's (INTC) acquisition of MobilEye (MBLY) at a +30% premium.

The big news of the week is and will be the rate hike this Wednesday.

Seasonally this week has been a very positive week for the market as you can see in the chart below.


$BABA, $FIVN, $NTES, $TEAM, $YNDX, $TNA are the stocks on my long-only watchlist today.


We have an interest in these stocks if and only if they can get through yesterday's high plus .10-cents, that is typically where our buy stops will be. This single criterion will narrow down the list to a handful of names unless of course, the market is super strong. You can also narrow down the list by float, price, sector, or whatever your preferences are.

These ideas are what we consider swing trades that can last anywhere from 1-10 days. Most stocks if not all go through momentum burst that lasts 1-10 days, that momentum burst is what we look to take advantage of.

SIGN UP HERE FOR OUR STOCK PICK OF THE WEEK.


Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.


Wednesday, March 8, 2017

Just Resting

The market continues to rest, the SP500 is holding up well, IWM is the weakest, and the  QQQ has been the best performer.

One and three-month lows are expanding but nothing to alarming as of yet.

Russell 2000 vs 5-day average of 1-month lows.

Russell 2000 vs 5-day average of 3-month lows.


Today's Watchlist; $CTRL, $NTES, $CSII, $TARO, $YNDX, $LNG, $LRN.


SIGN UP HERE FOR OUR STOCK PICK OF THE WEEK.


Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.

DISCLAIMER

Tuesday, March 7, 2017

Taking A Break

The market has been under pressure ever since over the last few days, and it has given up the entire gain of the feel good 1-day rally that we had after the Trump speech.

The focus now seems to be on the imminent rate hike that will happen next week.

There's not much to do here. SP500 stocks at 20-day highs have fallen off a cliff, but a more important barometer (20-day lows) has only seen a small expansion. An expansion of lows is more important than a deterioration of highs.

SP500 STOCKS 20-DAY HIGHS

SP500 STOCKS 20-DAY LOWS

I have a few names on my long-only watch-list; $CLF, $FIVN, $LNG, $IIVI, $OAS, $ERX, $GUSH.

Oil stocks seem to be firming up a bit so I will pay close attention to $ERX and $GUSH.


We have an interest in these stocks if and only if they can get through yesterday's high plus .10-cents, that is typically where our buy stops will be. This single criterion will narrow down the list to a handful of names unless of course, the market is super strong. You can also narrow down the list by float, price, sector, or whatever your preferences are.

These ideas are what we consider swing trades that can last anywhere from 1-10 days. Most stocks if not all go through momentum burst that lasts 1-10 days, that momentum burst is what we look to take advantage of.

SIGN UP HERE FOR OUR STOCK PICK OF THE WEEK.


Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.

DISCLAIMER

Friday, March 3, 2017

New Lows Are Not Expanding

It's only natural for the market to pullback after such a huge up day. However, the pullback to me in stocks and the actual indices was a little more than what I was looking for.

The SPY, IWM, COMPQ, all closed below Wednesday's low.


Only time will tell if it means anything, one thing is for sure; you can point out breadth divergences across the board, but new lows are not expanding. The expansion of new lows is more important to breadth measures than stocks not printing highs while the SP500 is.

I have a few stocks on my list today; $INVE, $CNAT, $FIVN, $TEVA, $QTNA.


We have an interest in these stocks if and only if they can get through yesterday's high plus .10-cents, that is typically where our buy stops will be. This single criterion will narrow down the list to a handful of names unless of course, the market is super strong. You can also narrow down the list by float, price, sector, or whatever your preferences are.

These ideas are what we consider swing trades that can last anywhere from 1-10 days. Most stocks if not all go through momentum burst that lasts 1-10 days, that momentum burst is what we look to take advantage of.

SIGN UP HERE FOR OUR STOCK PICK OF THE WEEK.


Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at fzorrilla@zorcapital.com or 646-480-7463. 

We live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, content is the new marketing, content is the new networking. With information being so readily available, bloggers try to differentiate themselves with their writing skills, volume, and consistency, putting out blog posts to meet quotas. We are seeking to stand out from the crowd by showing performance, by taking all the information and seeking alpha, that’s the sole purpose of the blog. It won’t always be pretty; it’s never easy, and performance is spotty, but we seek superior risk-adjusted returns, not notoriety for our writing skills.  If this is something you can relate to, then this blog is for you.