frankz

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 [...]

The market is under pressure this morning, many will point at Donald Trump's "FIRE AND FURY" threat to North Korea yesterday right before the close as the reason for the weakness. The fact is that breadth has been weak for the last 11-days measured by the number of stocks printing fresh 1-month and 3-month lows. You can also see some of that weakness in stocks down 13% or more in the last 34 days, the pattern has been an expansion of new lows.The charts below tell you the whole story; CLICK TO ENLARGE.STOCKS PRINTING FRESH 1-MONTH LOWS.STOCKS PRINTING FRESH 3-MONTH LOWS.STOCKS [...]

The market is holding up well, the Dow Jones is working on a very nice winning streak, the Q's have been consolidating for the last 11-days, and the small caps are lagging.There's not much to say, we're in August, kids are almost out of camp and many parents are looking forward to vacation this month.August is known to be a shaky month for equities, but so far it has been smooth sailing. As far as individual stocks we are not seeing a whole lot of momentum. We've seen a few earnings blow-ups in some of the high-flyers; PI, AAOI, COHR. [...]

Trading is full of regrets:I regret not selling on the way up.I regret selling too soon.I regret taking such a small positionI regret taking such a big position.I regret holding through earnings.I regret not holding through earnings.The list of regrets from trading could go on and on. And the fact is that all these regrets, for the most part, are due to the outcome of the trade which you have no control over.Focus on what you can control, take full advantage of your strengths, minimize your weaknesses, know that there is no perfect system and that a lot that happens [...]

The market is slightly extended in the short-term and Facebook's positive earnings reaction is adding a little more fuel to the fire.  Facebook is up $12 dollars pre-market, this is a huge gap for a stock that has 2.3 billion shares in the float. Chances of Facebook digesting this gap up for a few weeks is a high probability event, don't chase it.With the market so extended in the short-term, good risk-reward swing set-ups are drying up. There aren't many out there right now. Over the next 5-days or so I will be extremely selective with new buys.We are in the middle [...]

Howard Marks's memo is out and it's a doozy, he covers EVERYTHING; FAANG, PASSIVE INVESTING, DIGITAL CURRENCIES,  and the high level of stupidity we are witnessing right now.In my view, digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it.  But this isn’t the first time.  The same description can be applied to the Tulip mania that peaked in 1637, the South Sea Bubble (1720) and the Internet Bubble (1999-2000).  I absolutely am not saying stocks [...]

Spikes In 1-month Highs Leads To A Breather-ZorThe VIX Is Broken--Steven PlaceSecond Half Outlook--Joe Fahmy20-Day Highs On Fed Day Is Not Bullish--Quantifiable EdgesSIGN UP HERE FOR OUR STOCK PICK OF THE WEEK.STOCK OF THE WEEK RECAPFrank 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 MeWe live in a world in which we are bombarded with information, tweets, blogs, etc., content is the new salesman, [...]

I'm always intrigued by huge bases, typically a prolonged period of contraction leads to a prolonged period of expansion, hence the term; the bigger the base, the higher into space it goes. Buying stocks emerging from bases is by far my favorite set-up. $Z $PI and $WKHS are some of the ones we've highlighted in the last couple of months. $Z and $PI on 5/18/2017, Zillow has moved 24% since then and PI +50% since the POST. WorkHorse (WKHS) went up as much as 33% since this post on June 2nd, POST. They are not all winners, but it's a high [...]

Yesterday the Nasdaq Composite and the Nasdaq 100 (QQQ) both breached and closed below their respective 50-day moving average for the first time since December 2016.The 50-day moving average is a widely followed moving average, whether this breach and close will mean anything, only time will tell. The outcome in the QQQ and Nasdaq composite in the near future will either strengthen or weaken the 50-day narrative.What I think is more important, is something we mentioned on June 16th, here is the gist of it; The FANG stocks have been under pressure. They had a big sell-off that was followed by [...]

On 4/4/17 Plug Power ($PLUG) announced that it reached an agreement with Amazon ($AMZN) to utilize Plug Power fuel cells and hydrogen technology in its fulfillment network (LINK).Amazon was granted warrants to acquire up to 55,286,696 shares of Plug Power shares at $1.189. Under those terms, Amazon must spend at least $600 million over the life of its contract with Plug Power to take full advantage of that deal.Amazon and Plug Power will also begin further developing Plug's technology together, including expanding the applications for Plug Power's line of ProGen fuel cell engines.Amazon has done similar deals over the last year with two [...]