Trading Is Random

Yesterday was a perfect example why I rather let the market narrow down my watch-list rather than do it discretionally.  Cypress Semiconductor (CY) was on my list, but I decided not to put the order in because I felt that the float was too large and that the semiconductor sector was extended.  Mid-day yesterday a buyout rumor hit the wires and CY at one point was up 10%.  There's a lot of randomness in trading, and while we might have a feeling of which stock has the best chance of being the biggest winner for the week, we never really know.  Long term, the biggest winners share certain characteristics that make a difference, but in the short-term none of that matters.

All my buy orders had an exact buy time which was 10:30 am, out of 23 names only three triggered after that time, 1 (DLTH) triggered before 10:30 am.

My list today is a lot longer than I would like it to be, the recent 6-week consolidation is the reason why I have so many names. Many stocks like the market have been moving sideways marking time.

I have an interest in the stocks below if and only if they go through yesterday's high plus .10-cents.  I consider these swing long ideas with a shelf life after they trigger of 1-10 days.

ATSG, XPO, NSM, CRUS, SNCR, MELI, TWOU, OSK, ROST, MIDD, LOCO, TWTR, VG, CYBR, MGA, SON, AR, ELLI, MGT, ERII, GV, ININ, CPA, MPET, CGNX, SFLY, TWLO, YNDX, CHGG, LC, ICON.

If I wanted to narrow down the list and not allow the market to do it for me, then I would prioritize the list based on their float, the smaller the float the higher in the list it goes.

My opinion and outlook are subject to change as new information comes in.

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. 

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

These Stocks Are Ready To Be Squeezed

The post BREXIT gains in the SP500 have been consolidated in a very bullish manner by most counts, while the gains in the SP500 have been muted some individual stocks have done very well. To put things in perspective, according to Bloomberg the SP500 has traded in a range of 1.5%, the smallest range since 1965.

In this light volume environment, there are a few stocks that with low floats and high short interest that look ripe for short squeezes, the type of squeezes that happen when individual stocks are running red hot.

DLTH, TWOU, CHGG, ININ, DV, CGNX, BMO (large float) are a few of the stocks that are trading near 3-month highs with small floats and high short interest ratios.  You can get the details about these stocks here.

I have an interest in going long the stocks above if and only if they go through yesterday's high plus .10 cents.

WWW, MELI, ROST, CASY, SON, SKYW, RSYS, CY, LC, YRCW, EXAR, NSAM, YNDX, SFLY, MGT, are also of interest for swing trades. There are many different ways to narrow down this list, you can do it by focusing on the ones that have low floats, high ATR'S, low price, high price, etc.  Or you can allow the market to get you in or keep you out by just focusing on the one's that break the previous day high by at least .10 cents.

My opinion and outlook are subject to change as new information comes in.

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. 

See How I Translate My Tweets & Blogs Into Actual 3rd Party Verified Trades

Work With Me

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Range Broken, Now What

The market finally showed a little volatility today, the SP500 broke its 2-week range to the downside. I believe that breadth gave us a heads up that the recent range was going to resolve itself to the downside; 1-month and 3-month lows were expanding, the advance-decline was also showing less participation, you can see the charts here--> Jul. 28 at 08:24 PM and here Jul. 28 at 08:16 PM.

Here is a possible roadmap for the SP500, H/T AlphaTrends

Underneath the surface, we still have some decent swing ideas that if the market cooperates they should do well.  $MTW $ NTES $HLX $WBMD $AYI $YY $SGYP $MSM $CVGW are some of the stocks of interest on the long side if they are able to break through today's high.

My opinion and outlook are subject to change as new information comes in.

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. 

See How I Translate My Tweets & Blogs Into Actual 3rd Party Verified Trades

Work With Me

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.