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Contraction leads to expansion typically in the direction of the preceding trend.  It took the SP500 over 50 days to decline more than 1%,  and it traded in a very small range in the last two months, we had not seen such tightness since 1928. Unfortunately for many the expansion was to the downside. It took just a few hours to dissipated what took us 43 days to make as you can see in the chart below.September historically is a weak month for the SP500 and a very strong month for volatility index (VIX) as we noted here (Doom and [...]

The big news of the day yesterday was the Apple event (APPL).  Apple always has an impact on semiconductor stocks in a good and or a bad way. I remember making a fortune on CRUS years ago due to APPLE using their product.For informational purposes only I pinpointed the in Semiconductor ETF (SMH) chart the last 7 Apple events. Without forming too much of an opinion you can see that these events have for the most part changed the previous trend in the Semiconductor ETF in the very short term.SMH TODAYMy opinion and outlook are subject to change as new [...]

It's no secret that the month of September historically has been a bad month for stocks. With information so accessible nowadays investors have something to worry about every day, nothing slips by social media and blog quota driven sites.  However, the data is enticing enough to write about it. The charts below tell you all you need to know.SPY seasonality chart of the last 30-years, via SentimenTrader. Click to enlarge charts.SPY September stats dating back to 1993, courtesy of PastStat.Seasonal Chart of the Dow Jones in election years, via @heynowHere's another great chart via AlmanacTrader that shows the seasonal pattern in eighth years.We [...]

The market continues to trade sideways in a very tight action but don't be fooled, underneath the surface stocks are working. The current action is the opposite of what we saw a year ago when the indices were grinding higher, and individual stocks were stuck in the mud.AXGN, XPO, ICON, KKR, ATSG, GWR, AIRG, TPIC, CSX, UNP, KSU, PGND, ASPS, CLMT, are the stocks on my list today. Very simply, I'm looking to get long these stocks if and only if they go through yesterday's high plus .10 cents.Swing trading gives you the opportunity to take advantage of short-term price [...]

I'm always intrigued by huge bases from stocks that are trading near their 52-week low. Normally a prolonged period of contraction leads to a prolonged period of expansion. Iconix Brand Group has been in a range for roughly 11-months, the stock has traded between roughly $6 to $8.75. Previously the stock was in a persistent downtrend since September 2014 after hitting a high of $44. After a massive gap down in November 2015, the stock started losing momentum to the downside and started to trade sideways. This is when the buyers and sellers start to find equilibrium, very simply, the [...]

Individual stock set-ups are there, they are ready, all they need is a little push and help from the market.  The sideways action in the last six weeks is the reason why I have so many names on my list, however not many have been triggering.  The trigger rule is simple; the stock has to go through the previous day plus .10-cents.Tomorrow we have the NFP number due at 8:30 am and that can dictate the action for a few days.  At the same time, breadth is and has been deteriorating to the point in which I think will impact [...]

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. [...]

The post BREXIT gains in the SP500 have been consolidated in a very bullish manner by most counts, while the gains in the SP500 have been muted some individual stocks have done very well. To put things in perspective, according to Bloomberg the SP500 has traded in a range of 1.5%, the smallest range since 1965.In this light volume environment, there are a few stocks that with low floats and high short interest that look ripe for short squeezes, the type of squeezes that happen when individual stocks are running red hot.DLTH, TWOU, CHGG, ININ, DV, CGNX, BMO (large float) are [...]

The market finally showed a little volatility today, the SP500 broke its 2-week range to the downside. I believe that breadth gave us a heads up that the recent range was going to resolve itself to the downside; 1-month and 3-month lows were expanding, the advance-decline was also showing less participation, you can see the charts here--> Jul. 28 at 08:24 PM and here Jul. 28 at 08:16 PM.Here is a possible roadmap for the SP500, H/T AlphaTrendsUnderneath the surface, we still have some decent swing ideas that if the market cooperates they should do well.  $MTW $ NTES $HLX $WBMD $AYI $YY [...]

ETSY operates a marketplace to make, sell, and buy goods online.  The stock is at a level that could potentially make a decent move in the short term, I explain in detail in the video below. 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. See How I Translate My Tweets & Blogs Into Actual 3rd Party Verified TradesWork With MeThe information in this blog post represents [...]