Tuesday, December 5, 2017

The Record Breaking DOW

My rolling 5-day watchlist is my best barometer for the health of the market when it comes to swing-trading. Lately, the performance of the lists has been weak: stocks are not triggering, the ones that are are not seeing follow through.

The DOW has done well, and to most home-gamers that is all they need to see to say things are doing well. Yesterday at exactly 4:01 pm I get this alert on my iPhone from CNBC; BREAKING; DOW rises more than 50 points to record close as street cheers Senate passing tax bill. 

However, the DOW was up 300 points intraday. We have 270 stocks down 4% or more versus 145 that were up 4% or more. 844 stocks were up from the open versus 2,094 that were down from down the open. Bottom line; it wasn't as pretty as the headline sounds.

Talking about pretty, it has not been pretty for large tech names, weeks of gains have dissipated in a few days, look at $MU, $LRCX, $FB, $SMH, ETC.


My main interest today is SP500 and QQQ names that are down multiple days in a row and have an RSI2 lever under 5, all that means is that I'm looking for big cap names that are oversold in the short-term that have the potential to bounce.


While the reversal was ugly, according to historical data, yesterday's action has a bullish tilt to it.




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. 

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