Tuesday, January 17, 2017

The Bigger The Base The Higher Into Space It Goes

Diana Shipping, $DSX, is trying to emerge from a one year. I'm always intrigued by bases because typically a prolonged period of contraction leads to an extended period of expansion. We have covered bases extensively here (SEE BELOW) on the blog, and it's my favorite set up.

Stan Weinstein, the author of Secrets For Profiting In Bull and Bear Markets, has a great definition the "basing area," specifically the one's that are formed after being down for several months.

The Basing Area: "After XYZ has been declining for several months, it eventually will lose downside momentum and start to trend sideways. What's actually taking place is that buyers and sellers are starting to move into equilibrium, whereas previously the sellers were far stronger, which is why the stock had plummeted. Volume will usually lessen--dry up--as a base forms. But often volume will start to expand late stage 1, even though prices remain little changed. This is an indication that dumping of the stock by disgruntled owners is no longer driving down the price. The buyers who are moving in to take the stock off their hands are not demanding any significant price concession."

That's exactly what is happening with $DSX, it has been going sideways for a year and now you see a pattern of higher lows. Very simply, the buyers are no longer waiting to buy the stock near the bottom of the base, they want it now, they see greener pastures ahead.


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.

Oil Names In Play

The futures are off a little this morning and the sell the inauguration is getting a lot of attention on the social media front.  In other news, Noble Energy$NBL bought Clayton Williams $CWEI at a big premium, this might put the sector in play today. We have a few oil names on the list today; $HOS $DNR $BBG $ERX $GUSH. We have an interest in these names if and only if they go through Friday's high plus .10 cents. We want to buy these stocks on the move and not anticipate the move.

Here is the rest of the list;


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


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.

Tuesday, January 10, 2017

The Russell Is Resting

Momentum has slowed down a little bit, breadth has been somewhat weak, this is mostly due to the fact that the Russell 2000 has been down for three days in a row.

Inauguration day and the beginning of earnings season are two catalysts some are pointing at as possible triggers for a pullback in the market. That remains to be seen and only time will tell.

With earnings season right around the corner, it is important to check the earnings date of your holdings.

My long-only watchlist consists of a few names with an extra focus on $POT $LC $AIRG and $BCO.

Here is the rest of the list;



We have an interest in the above names if and only if they go through yesterday's high. That one single criterion on most days eliminates a bulk of the names. These ideas are what we consider swing trades that can last anywhere from 1-10 days. Most stocks if not all go through a momentum burst that lasts 1-10 days and that is what we look to take advantage of.

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.

Sunday, January 8, 2017

The Trump Industries


The market has a made a decent move after Trump won the election, one can assume that the industries that have made the largest moves are the biggest benefactors of Trump’s presidency. 
Below you can see the best performing industries on a 5-day basis, then on a 10-day basis and then you can see the full coverage (best-performing industries since 11/9). 
Large banks, Regional Banks, and the oil sector have been the clear standouts.


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.

Saturday, January 7, 2017

This Volatility Fund Is Going To Reverse Split, What Does It Mean

UVXY a volatility fund that has wrecked many accounts is set to do a reverse split next week on 1/12/2017. Since its inception, UVXY has reverse split six times, these funds typically split after a prolonged move higher in the market. The stock market has a tendency to move higher over time, so like every bearish indicator, strategy, etc., they work sometimes but fail a majority of the time. However, when you couple volatility fund reverse splits, a new administration, breadth deterioration, and above all else price action you can start to see what are the probabilities of the possibilities.

Click to Enlarge







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.

Friday, January 6, 2017

Citrix Systems Huge Base

The weekly and daily chart of Citrix Systems are aligned. On the daily chart, we have an 8-1/2 month box and a pattern of higher lows. The stock recently broke to new highs and successfully retested the top of the trading range as you can see in the chart below.


On the weekly chart, the stock has been going sideways since 2011. I'm always intrigued by bases because typically a prolonged period of contraction leads to an extended period of expansion. 

Stan Weinstein, the author of Secrets For Profiting In Bull and Bear Markets, has a great definition the "basing area," specifically the one's that are formed after several down months.

The Basing Area: "After XYZ has been declining for several months, it eventually will lose downside momentum and start to trend sideways. What's actually taking place is that buyers and sellers are starting to move into equilibrium, whereas previously the sellers were far stronger, which is why the stock had plummeted. Volume will usually lessen--dry up--as a base forms. But often volume will start to expand late stage 1, even though prices remain little changed. This is an indication that dumping of the stock by disgruntled owners is no longer driving down the price. The buyers who are moving in to take the stock off their hands are not demanding any significant price concession."


Citrix has not been declining for several months. However, it looks like a brand new set of buyers are ready to take the stock higher.

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.



The Market Is Still Constructive

Non-farm payroll numbers were out earlier today, and the initial reaction to the (1st 30-minutes) is positive.

Here's the short-term look of the SPY from a very trusted source @AlphaTrends, so far so good.



I have an interest in few stocks today if and only if they are able to go through their respective highs from yesterday, 10 names on the list, but I will focus specifically on $Z $CTXS $CWT $AQMS $VEEV $HAIN, the weekly and daily charts are aligned.

Here are the rest of the names;


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

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.