Saturday, April 22, 2017

Taking Out The Trash

There's a big difference between the best-performing stocks and the best growth stocks, many times one has nothing to do with the other especially in the short-term.

So far 85% of this year's best-performing stocks started the year under $10 and most if not all are unknown and without any great fundamental characteristics.  This was the case last year, the year before, and probably will be the case next year. Here is a post from 2013 talking about this very same thing; LINK

You can narrow down the stock universe in many different ways; by market cap, price, fundamentals, PE ratio, above moving averages, or by what works the best within your timeframe. Due to liquidity factors, you might be forced to only deal with stocks that meet certain liquidity, market cap requirements but that does not make them the best stocks, that makes them the best stocks for your own pre-requirement universe.

CHECK OUT THIS VIDEO FROM STOCKBEE OF WHAT WORKS. Believe me, it's worth it.

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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.

Friday, April 21, 2017

Sell'em Tight Buy'em Loose

The market had a great day yesterday. However, some possible stiff resistance sits right on top of us. The Small Caps led yesterday's rally, but in the grand scheme of things, it is still trading in a range that is now 85-days long.


Follow through has been an issue lately, in other words, it has not paid to chase gains.

Trading is a numbers game, it should be done within a portfolio of passive core index ETF holdings. Because stocks move in short-term bursts, they can be timed, in the short-term momentum and mean reversion is why most stocks move.  Scans can be created by looking at the most recent winners in the last 30-days if your timeframe falls into that window.

Here is my watchlist for today;


I have an interest in these stocks on the long side if and only if they go through yesterday's high plus .10-cents. This single criterion will narrow down the list and get you involved only in the stocks that are on the move. The primary drivers of stocks in the short term is momentum and mean reversion. Stocks that have a significant move in the short term tend to rest and move sideways for a few days and then resume higher more often than not. These momentum bursts typically last 1-10 days. 

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.

Thursday, April 20, 2017

Just Own The Freakin SPY

One of Raymond James's Chief Market Technician Andrew Adams is out with a note today talking about the bear market that has happened underneath the surface while the SP500 has held up well and masked all the weakness underneath the surface. These negative breadth divergences have been discussed ad nauseam on fintwit.

I’ve used this stat before, but it still astounds me that during 2015 if you had put all your capital into the largest ten companies in the U.S. stock market, you would have ended up making about 20% on the year, yet if you had held the other 490 companies in the S&P 500 instead, you would have actually been down about 3%. Talk about a strangely narrow market! Of course, that period culminated in the stealth tactical bear market in early 2016 when, at the February 11 low, the S&P 500 stocks were down an average of 26.7% from their 52-week highs and stocks in the Russell 3000 were down an astonishing 37.3%, on average. We still contend that was probably the “bear market” that many are still predicting even now, but it does not qualify in the eyes of some purists since the S&P 500 itself was “only” down about 15% from its previous all-time high instead of the requisite 20%.--Andrew

Joe Fahmy discussed this back in December on Fox Business;



Very simply, I have stated this before and will state it again; it makes sense to own the index ETF's has core holdings. By owning the SPY, you will be involved in all the biggest winners that you always hear about on TV like FANG (Facebook, Apple, Netflix, Google) without their respective individual risk. And certainly, you won't be dumbfounded, frustrated, etc, when the negative divergences persist for months, but the SPY is doing well.

Owning the indices; SP500, QQQ, IWM, allows you to participate in most if not all of the great companies that come public. You won't get the full participation on the way up, but you certainly won't live through gut wrenching drawdowns that are impossible to live through.

Before you sell everything and go 100% into the SPY make sure you are aware of this (below) and take advantage of them.


The average intra-year decline since 1980 has been -14%.
I personally don't believe in being 100% passive, 60% passive, yes, we can probably all agree that you can't time the MARKET, but you can time stocks.

HAT-TIP; TheReformedBroker

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.

Gains Are Being Faded

The SP500 gapped higher yesterday and peaked at 10:00 am, this has been a recurring theme over the last couple of days.

Energy and the metals took on the chin with the miners (GDX) ending the day -3.63% and Energy (XLE) was down -1.47%.

I have a few stocks on my watchlist today.



I have an interest in these stocks on the long side if and only if they go through yesterday's high plus .10-cents. This single criterion will narrow down the list and get you involved only in the stocks that are on the move. The main drivers of stocks in the short term is momentum and mean reversion. Stocks that have a significant move in the short term tend to rest and move sideways for a few days and then resume higher more often than not. These momentum bursts typically last 1-10 days. 

I'm excited about $KITE, it gapped higher on 2/27 on the back of some CAR-T results, since then it's been trading sideways while the entire sector has been under pressure. $KITE, has tightened up recently and it looks ready to resume higher, I have an interest in the stock if it can get through today's high plus .10-cents.


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, April 19, 2017

When Is The Russell Going To Wake Up

The Russell 2000 has been trading sideways for 83-days, breadth hasn't been great, but at the same time, it has not been horrible. Maybe the earnings season will be the catalyst to get the Russell out of its dull drum, maybe it will be Brexit, or perhaps it will be the sell in May and go away seasonality.


Here's another view from AlphaTrends.


FANG; Facebook, Apple, Netflix, Google, have been holding up well and doing a great job masking some of the weakness. According to Fundstrat 40 stocks out of the 500 SP500 stocks are responsible for the entire year-to-date gain in the SP500. Half of the entire SP500 gain so far has come from 10 stocks. This is just another reason why it makes sense to hold the index ETFs as core holdings. Here's the article WSJ.

Here are the names on my watchlist today;


I have an interest in these stocks on the long side if and only if they go through yesterday's high plus .10-cents. This single criterion will narrow down the list and get you involved only in the stocks that are on the move. The main drivers of stocks in the short term is momentum and mean reversion. Stocks that have a significant move in the short term tend to rest and move sideways for a few days and then resume higher more often than not. These momentum bursts typically last 1-10 days. 

FLXN is a recent example;

Mean reversion plays are not as easy to play, however, what you are looking for is for a stock down 3 or more days in a row, the buy point is when it goes through the previous day high, PLSE and FMI are two recent examples.


Size and risk management are very important when swing trading, in certain markets one strategy will work better than the other.

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, April 5, 2017

How To Deal With Bad Breadth



Now more than ever, there is always a lot of mention of "bad breadth." This is when the indices traded or are holding up a lot better than the majority of individual common stocks.

For example yesterday I tweeted that it was an interesting day, the major indices were up, the small caps barely down but yet we had more declining issues than advancing issues, we had more 1 and 3-month new lows than new highs. We also had more stocks down 4% or more for the day than up 4% or more.


CLICK TO ENLARGE

But yet the indices masked what was happening underneath the surface by closing green for the day. This is going on quite often. Here are my thoughts on it;


  • Negative divergences are not a great timing tool, positive divergences are.
  • One has to keep an open mind to the fact that the lagging stocks can catch up to the indices and negate the negative divergence.
  • More importantly above else, it reiterates why you should own the index ETF's as core positions, YOU WILL NEVER FEEL LEFT OUT.
Persistent negative breadth will eventually catch up to the indices, however, more often than not you have to give the benefit of the doubt to the bulls.

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.

Tuesday, April 4, 2017

Your Stock Gaps Down, Now What



What do you do when the STOCKGODS bless you with a gap down? If you are like me, you probably determine your positions size based on the difference between the purchase price and your stop loss divided by how much you want to risk. Let's say you have a 100k dollar account and you want to risk 1% of your total capital that equals $1,000. If you your purchase price is $25 and your stop is $22, you take $1000 divided by $3 which equals 333 shares, that is the amount you can buy based on how much you want to risk.

Now you get the gap down, the stock opens up at $22, what do you do?

I think at a minimum you should shoot first and ask questions later, either sell 1/2 your position immediately or the entire position and move on. Your stop loss was already pre-determined, and gap downs are part of the game. What happens on the days to come will either make you feel good about your actions or it won't. But based on the fact that you will only be right on half your trades you should already be prepared mentally to take losses. I know--it sucks.

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, April 3, 2017

Don't Fear A Stock Market Crash

Trader's linkfest with some actionable ideas.

Don't Fear The Stock Market Crash--Tony Robbins

Here is Tony in 2010 with a note of caution--Tony Robbins

Best Stocks To Buy In The 2nd Quarter--Schaeffer Research

Bull Market Top Checklist--Strategas Research

Top 10 Best Performing Hedgefunds in the 1st Quarter---@Hegdemind

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.


Friday, March 31, 2017

Trading Rules VS Trading Guidelines

Forget about trading rules and think more about trading guidelines. So many trading rules get thrown around Twitter, it's nauseating. Some rules are from the 90's, some from the 80's, 20's, etc. I think in trading you should think more in guidelines than set in stone rules. The outcomes of trades will have you rethink what you do multiple times throughout the year.

The rules are endless; 200-day moving average rule, average down rule, don't let a winner turn into a loser rule, don't buy stocks in downtrends, etc.

Your guidelines about trading should be based on the commonalities that drive a stock within your trading timeframe. In other words, if your average holding period is 30 days then find out the commonalities of the best-performing stocks in the last 30 days for the next six months. You will probably realize that it is all about momentum within that time frame. If your holding period is quarters to years, then you will probably come to the realization that earnings, story, growth, etc. matter more.

Today when I did a quick scan of the best-performing stocks in the last 34-days, 80% of them share one market structure commonality. If you do this for the next six months, you'll notice that this market structure phenomenon happens consistently.

As of today, 51 stocks are up 25% or more in the last month, 78% of them share the same commonality as the above study. It's a market structure thing.

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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.

The Small Cap Index On A Five Day Winning Streak

The Small Cap Index (small-cap 600) was up every day this week, five consecutive higher closes. For long-term investors, this is meaningless, for traders it might not be the best time to get overly aggressive, perhaps, slow down for the next 5 days.

In the last five years, (up 5-days in a row) it has happened 21 times, the average final return five-day return has been +0.13%.

Click to Enlarge

Totals and average return for lowest return, highest return, and final return in the next 5-days.


Obviously, there is no edge in trying to short, but there is a slight edge in slowing down. The Small-cap index has only been up 6 consecutive days 13 times in the last 5-years, and only 5 times up seven days in a row.




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.


Swing Trading Watchlist

The SPY (SP500) is back at a level that can offer some short term resistance; $236-$237. For traders that can have some short-term consequences, for investors is pretty much meaningless.

I have a few stocks on my watchlist today; $BZUN, $V, $GXP, $AMBA, $KEM, $HSIC, $NVRO, $IPGP, $PARR.

$V and $AMBA are two stocks that printed inside days yesterday, and both saw some call option activity. I have an interest in these two stocks if and only if they go through yesterday's high.



$KEM and $HSIC also look ready to a second leg higher after 3+ weeks of sideways action.


The semiconductor stocks have been on fire, $IPGP has been moving sideways after a leg up, it looks ready for its second leg higher. Volume is an issue with this stock.


$GXP and $PARR two oil-related names that have been basing for months, stocks that breakout from long bases tends to start a new leg higher that lasts weeks to months versus just showing a short-term burst that lasts 1-10 days.


Stocks move in short-term bursts that typically lasts 1-10 days, that's every stock. We have an interest in the names above if and only if they can get through yesterday's high. This single criterion will narrow the list for you and get you involved in the stocks that are beginning their move.

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 29, 2017

An Interesting Finding That Probably Means Nothing

The great Urban Carmel from Fat-Pitch.blogspot.com pointed out that the average intra-year decline when the SP500 has been positive January and February is roughly -7 to -9%.


The reason why he is highlighting only the years in which the market was up January and February is that historically when January and February are up months the market does very well for the entire year.  Since 1950 when the SP500 was higher the first two months 26 times, 24 of those times it was higher by year end. Here's the research by Ryan Detrick.


What I found interesting was that most recent pullbacks under this January-February criteria have commenced in the month of May.


  • 2013 it was a 1-month shake out that started in May.
  • 2012 a 1-month shake out that also happened in May.
  • 2011 a 19% pullback that started in May.
  • 2006 an 8% pullback that started in May.
  • 2004 March.
  • 1998 July.
  • 1997 February.
  • 1996 May.
  • 1995 July.
  • 1993 March.
This does not mean that you sell in May and go away, but should be on the look out for quick shakeouts.


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.


The Music Is Still Playing

The market had a decent bounce yesterday led by the oil names that have been under pressure since December. We touched on two interesting oil plays yesterday that are due for a bounce LINK.

The big liquid names like AMZN, NFLX, FB, AAPL, are still holding up well. Newer names like SHOP, LITE, AAOI, are also acting very well.

The less news you consume, the better off you are, and trading should be part of an overall portfolio that also has a passive component.

Here's my watchlist for today;


I have an interest in these stocks if and only if they go through their respective previous day's high. Like Pradeep Bonde says; stocks move in momentum bursts that last 1-10 days. Here are few examples;




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, I prefer to allow the market to narrow down the list for me, by getting me in or keeping me out.

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.


Tuesday, March 28, 2017

Two Interesting Oil Plays

The energy sector (XLE) peaked back in December and its down -13% since then. However, $SN and $WFT are two energy stocks that look interesting to me right here right now.

Weatherford International has shown tremendous relative strength versus the sector as you can see in the chart below, it has gained +27% year to date versus -9% for $XLE.


The outperformance comes from some key news announcements;

  • The departure of their CEO on 11/9/2016, the stock jumped 31% on the news.
  • The hiring of Halliburton financial chief to run the company on 3/6/2017, the stock jumped 8%.
  • A joint venture with Schlumberger to service the fracking industry in the U.S. and Canada. $WFT will own 30% of the joint venture and receive a one-time $535 million cash payment that will help them deleverage their balance sheet.


There has been tremendous pressure in the energy sector, any relief should send $WFT higher. This new deal with SLB and the cash infusion should relieve a lot of pressure from the balance sheet and cast doubts to the short sellers. Currently, 15% of the float is short, and the short interest ratio is 4.3 days, the recent joint venture announcement could make some short sellers cover their shorts.


Sanchez Energy ($SN) is the other energy stock that looks interesting here.  On 1/12/2017 Sanchez Energy announced that it entered into a strategic 50/50 partnership with Blackstone ($BX) to acquire 318,000 gross operated acres from Anadarko Petroleum.

The news caught the Street by surprise, $SN which at the time was trading 2.4 million shares daily, traded 17 million shares the day after the announcement and 19 million the day after, the stock jumped from $8.70 to $14.00.  The stock since then has given up the entire gain of the deal and sits on its 200-day moving average. Here at these levels, you have an opportunity to own the stock at the same level it was before the partnership that took the stock 60% higher 2-months ago.

$SN is also heavily shorted, 23% of the float is short.

Weekly Chart.



The energy sector is due for a bounce, $XLE is down 8-days in a row.

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.


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. 

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