Friday, August 11, 2017

The Dog Days Of The Summer

Like always, the indices only tell you half the story, the market has barely gone down, in fact, it's only a few percent off the high, so minuscule that is not worth commenting on. However, individual stocks are telling you a different story. We had a large spike in 1-month new lows, we also had a breadth flip; 430 stocks are up +25% or more vs. 509 that are down -25% or more in the last 65-days. This is pretty amazing considering that we are barely off the highs, what it tells you is that a majority of stocks were holding up well but not really going gangbusters on the way up; low volatility on the way up and high volatility on the way down.

Here are some charts;

Breadth flip via stocks up and down 25% or more in the last 65-days.

Spikes in 1-month new lows often lead to a dead cat bounce.

When we get to 200 or more stocks down -25% or more in a month the bounce will have more sticktoitiveness.

Bottom line; I would tread carefully here. I were looking to play a bounce I would first start with the indices, then I would look for stocks that reacted great to their earnings report and try to buy those, for example; GRUB.

STOCK OF THE WEEK RECAP

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.


1 comment:

  1. Keep going it think it's the better way to describe yourself what you are thinking, hey admin let me know the things after reading your post I think you are also providing Free Stock Tips is that true.. if yes so can you please offer me some your recommendations!

    ReplyDelete