frankz

Make or Brake For Commodities –Dana LyonsBuy Halloween, Sell At Year End–Chad GassawayThe Best Six Months Start Next Week–Jeffery HirschSign Up For Free UpdatesWe might be able to help with your investments;Frank Zorrilla is the founder of Zor Capital LLC a New York based investment management firm.  Our goal is superior performance, with preservation of capital as our number one priority. Zor Capital manages separate accounts (both taxable and retirement) for accredited investors and institutions. This structure gives clients access to a hedge fund like strategy while maintaining 100% control of their accounts.  Managed AssetsPhoto; DeWaunSSPY $IWM $DIA $VIX

I have never been a fan of shorting breakdowns on any of  the major indices.  By nature indices are mean reverting vehicles, when they get stretched in either direction they tend to slow down or snap back in the opposite direction especially when it is stretched to the downside.  Normally when the indices get stretched to downside they can also become oversold and that can lead to a dead cat bounce which gives the shorts a better risk reward entry if they are inclined to short.The SP500 has now bounced from stretched/oversold levels, to a level that should offer some [...]

The action today was not as bad as it looks regardless of what is happening in the after hours.  Since 2013 the perma bears have been harping about how the Dow Jones that has 30 stocks and the SP500 with its 500 were masquerading the horrible action underneath the surface, and that was true, but not actionable until it was blatant which we wrote about here.  Today the complete opposite happened, while the Dow Jones and the SP500 were deep in the red the majority of stocks were doing fine.  The Russell 2000 outperformed the SP500 by 1.83% while closing up [...]

Over the last week or so there has been an outright panic on twitter in regards to the recent market action.  Just yesterday the CBOE put to call ratio printed its highest reading in 4 years, higher than any reading we saw in the summer of 2011 when the Russell 2000 lost 23% 12 trading days (7/22/11 -8/9/11).  During that time we had a real panic, forced liquidation, on 8/4/2011 we had 2,006 stocks down 4% for the day, on 8/8/2011 we had 2,483 stocks down 4%, on 8/18/2011 we had 2,066 stocks down 4% for the day, so far in [...]

Now more than ever you have to tune out the noise.  This is something I strongly suggest in bullish environments, but it’s a MUST during corrective markets.  During corrective markets you get the most emotional, confusing, bitter, angry, I told you so, and the silly prediction tweets.  At any given moment half of the stuff you write will be interpreted the way the reader wants to based on his bias, in corrective markets I can almost guarantee you that this will be the case 90% of the time.  As readers of other people’s tweets/blogs we have no idea what their [...]

Gold Timers Buying The Dip    Mark HulbertCatching A Falling Knife In Gold  Bernie SchaefferTechnical Analysis Would’ve Kept You Out Of GTAT   Tischendorf LetterA New Sentiment Indicator  Brett SteenbargerHow Expensive Is Shorting GoPro   WSJHow To Protect Your Portfolio From A Bigger Correction  Frank ZorrillaSign Up For Free UpdatesFrank Zorrilla is the founder of Zor Capital LLC a New York based investment management firm.  Our goal is superior performance, with preservation of capital as our number one priority. Zor Capital manages separate accounts (both taxable and retirement) for accredited investors and institutions. This structure gives clients access to a hedge fund like strategy while maintaining 100% [...]

Today by definition the Russell 2000 is officially in the correction camp, down 10% from its high.  According to sentimentrader.com ”after the Russell 2000 first enters a “correction” it takes a median of 16 days and -5.4% loss to hit an intermediate-term low.”Let’s for a few minutes make believe that this is the start of a deeper correction, one that’s inline with the average intra-year decline of the last 30 years which is14%.  Here are some of the things that you should know and do from a swing traders perspective. 1. If you are a trader you must reduce exposure.2. You should probably take some time off [...]

The third quarter ended with all the major indices RUT DJIA SPX COMPQ QQQ down for the month of September.Here are the stats;-IWM -6.19% for the month, down -7.97% for the quarter, the weakness here which explains the horrible breadth while the DOW and the SP500 hung near highs fooling the home-gamers.-The Dow Jones was down -.03% for the month and up 1.39% for the quarter.-Nasdaq Composite was down -1.89% for the month but up 1.92% for the quarter.-SP500 was down -1.5% for the month but up .60% for the quarter.-QQQ was down -.96% for the month but up 5.29% [...]

I’m always intrigued by huge bases, normally a prolong period of contraction leads to a prolong period of expansion., hence the term; the bigger the base the higher into space it goes.  We’ve pointed out a few bases over the last year that have made huge moves after we flagged them.  We pointed out $QSII on 7/10/2013 it ran 18% in a few weeks, $PVA on 7/17/13 at $5 and a few months later at its peak it was up 250%, on 9/13/2013 we highlighted $HZNP at $2.75 at its peak 6 months later it was up 481%.  These huge bases don’t show up on a [...]

Bloomberg did a small profile on a Japanese day trader who made 6 billion yen last year and pretty much started from scratch to build a small fortune, it sounds a lot like the Dan Zanger story.  While many on the social media front were making fun of the article and down playing it they’re a few things worth noting.1. “Self-control is so important. You have to conserve your assets. That’s what insulates you from the downturns and gives you the ammunition to make money.”  This is a classic rule for traders, you need to be able to survive the [...]