Stocks Are About To Take Over
The market added to its gains yesterday with another decent move higher; we are now up 2.5% since Thursday’s close. Short-term traders are probably looking for some consolidation here, and that is to be expected if it were to happen. However, now is when we generally see more individual names start to move on their on merit, sort of a passing of the baton until we get short term overheated. In other words; stocks over indices over the next few days.
Some of the standouts from yesterday’s LIST were; LGCY +11%, AREX +11%, DNR +7%, WLB +7%.
Today we have DNR, RYAM, DGI, VMW, PAA, AVH, JONE, TCK, POT, TRCO, OLLI, BTE, on the list.
The rules are simple;
- Only get involved if they go through yesterday’s high plus a few pennies.
- Based on the chart patterns, the stops are close and clear.
- Either the market will get you in or keep you out.
- I only play this list one way, LONG.
- Stocks move in momentum burst of 3-5 days (stockbee), you want to buy on the first day and start unloading on the way up and on days 3,4,5.
- You are going to be wrong half the time.
- Position size makes all the difference in the world.
- I work with a price stop and a time stop.
- Stocks in the short term move from 52-week lows, 52-week highs, all time highs, etc.
- Contraction leads to expansion; this happens at lows, highs, middle, etc.
- I tend to stay away from buying stocks in the first 15-minutes.
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 firstname.lastname@example.org or 646-480-7463.
The information in this blog post represents my own 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.