Monthly Archives: October 2016

The best performing single ETF'S this year have been KOL (+108%), GDXJ (+107%), EWZ (+83%), and GDX (+72%). These 4 ETF's all had one thing in common at the beginning of the year; they were all down 4-years in a row."The time to buy is when blood is running in the streets".---Baron RothschildIt feels much better to buy assets while they're rising, but it's usually smarter to buy after they've been fallen for a while."-- Howard MarksAccording to the Ivy Portfolio, the median country returns from 1903 to 2007 is 10.65% (all years), and 14.9% after three down years in a [...]

There's a lot of talk nowadays of the underperformance of hedge fund managers, over the last two weeks we have had non-stop articles, blogs about how badly these guys are doing. They're plenty of reasons one can come up to justify the underperformance of this group versus the SP500. There's one reason that is never mentioned in the blog posts that bash the hedge fund industry.Reasons for underperforming the SP500;Too much money under management.As a group maybe they are not that talented.Main interest is collecting the 2% management fee than trying to swing for the fences to collect the 20% performance [...]

These are the stocks of interest today on the long side if and only if they go through yesterdays' high. Keep in mind that most of these stocks report their earnings next week. The big standout from yesterday's watchlist was ACIA, +7%.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 TradesWork With MeThe information in this blog post represents my opinions and does not contain a recommendation [...]

These are the stocks of interest today on the long side if and only if they go through Friday's high.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 TradesWork With MeThe information in this blog post represents my 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 [...]

The indices continue to run in place, 4-months of sideways action. Breadth is deteriorating somewhat, if you look at the amount of stocks below their respective 50-day moving averages it might raise some eyebrows because the average is low, but most stocks are not down a lot, the averages just caught up with them due to the sideways action. Visa is an example of a stock that is trading near highs, but yet it is barely above its 50-day moving average.Some of the biggest companies will be reporting this week; AAPL, AMZN, TSLA, GOOGL, CMG, AMGN, XOM. So far earnings reports [...]

If you show the above chart to an audience of a thousand people and ask them if they would be willing to invest in blue the equity curve, 99% will probably say yes. What's not to like; 18% annual return, $1k investment in 1974 would be worth $1 million today vs. $104k for the SP500. However, only a handful of people have the fortitude to invest and stick with that equity curve, and one is Bill Dunn himself.On the road from $1k to a $1-million the average drawdown of the program was -37%, the largest drawdown was -63% and the high [...]

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 TradesWork With MeThe information in this blog post represents my 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.

We have seen some decent deterioration underneath the surface, but to my surprise, I continue to find a lot of set ups.  Whether or not these set-ups will work out is a different story, whether or not they will have any follow through is another story as well.The major indices minus the NDX are trading below their respective 10,20, and 50-day moving averages.  On the flip side, the liquid growth names FANG had a decent day yesterday suggesting that things are not that bad. Bottom line, the Bears are weak, and the bulls are weak.BVX, FMSA, MOMO, AREX, WB, WLL, CTRL, ETSY, [...]

I'm surprised by the amount of set-ups that I found tonight considering the choppiness of the last two weeks. I'm not sure what to make of it, but the market will let me know soon enough.I'm going to play extra attention to the energy sector because like I mentioned yesterday on my weekly digest, XLE is one of only two S&P sectors that is above its 50-day moving average, plus the energy sector is also dominating the top 20 industry list this week. The XLE and XOP (oil&gas exploration) are both down five days in a row and testing their [...]

"The top  stocks in the SP500 are equal in weight of the bottom 250." -Carter WorthOn 7/8/2016 the SP500 closed at 2,129.72 and on Friday it closed at 2,133.29. On 7/8/16 Eight of the nine S&P sectors were above their respective 50-day moving average, today only two are above.XLK and XLE are the only two S&P sectors above their 50-day, if you believe in relative strength then those are the two sectors to focus on.  The weakest of the bunch have been XLP, XLV, and XLU, these are the ones to look at if you believe in mean reversion.Click to enlargeOn a [...]