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.