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Another great week inside 12631 is almost in the books. We are seeing both the forest and the trees inside our service, focused on making the correct decision with each trade and at every market juncture. Our state of the art chat room continues to impress even our most veteran of members, as we constantly strive to improve with new features. Above all else, though, our service thrives in a market like this.

Instead of getting too emotionally high or low, we simply put in the work every day and night to find the best trading ideas, and then execute while managing risk. There is no better atmosphere out there for traders to spend their daytime sessions and evenings in preparation for the market. When you factor in the way our service takes The PPT algorithm one step further, the decision to join should be a relatively easy one.

Click on 12631 and learn more about joining our crew.

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When the broad market is a snoozer, like it is today, it can be tricky to decipher what is actually happening. The Nasdaq Composite is slightly green, while the S&P 500 is down roughly 0.25%. Underneath the surface, I am seeing a decent mix of red and green issues. Overall, the market has been consolidating its march higher over the past few weeks in a rather orderly manner. Bears who have been foaming at the mouth to pounce on the short side have been pretty soundly disappointed by the lack of follow-through to any move lower. Objectively speaking, that appears to be a plus for the bulls. We also continue to see volatility abate, while upside breakouts appear to have worked much better than major breakdowns of late.

Inside 12631, we are tossing dogmatic approaches to the side and instead are focused on what is actually working, such as Endologix, which we have been long for a few days.

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I raised more cash today, as the market is rotating up to the mega cap Dow stocks while smaller-caps are starting to get sold a bit more aggressively. Generally speaking, when the Nasdaq lags the Dow in such a glaring manner it usually indicates more of a flight to safety amongst trades. After the rally that we have seen, though, I am not in a rush to call a major top and become a bear. However, I am particular over my entry points, and right now I am essentially trading around this tape more than anything else. Thus, while I remain constructive on the market overall, I did pare down some positions and unloaded others as a net seller today.

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We have a mixed bag early on this morning, with the stodgy old-tech mega caps leading the Dow Jones Industrial Average higher after beating earnings last night, while Google’s miss apparently is weighing down the Nasdaq to slightly red. Overall, the action is muted in light of the huge gap down that many traders had expected after both Google’s miss as well as the recent rally.

I do not see much reason to anticipate a major rollover just yet, though, especially in light of the stretched-out 30-minute chart of the SPY below, which takes us back to the beginning of this year. As you can see, on this timeframe we have a clear pattern of higher highs and higher lows, with a slight pullback since yesterday afternoon now looking like a bull flag.

I am not in a rush right now to accumulate more longs, but I continue to build my watchlist of stocks that are working. My main focus is on letting my winners run here, without being overly patient for poorly-acting issues. The financials look like they have some momentum early on, both relatively and absolutely, which means I am going to direct my research towards them inside 12631 this morning.

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On several occasions, I had profiled the longer-term damage that the chart of Netflx has sustained last year. Indeed, the overall technical picture is still painful for those who were bullish on the stock when it was above $300. Last week, however, I went long Netflix inside the 12631 Trading Service at $95.60, based on the daily chart setup. As you can see, price recently firmed up after a powerful move higher supported by strong buy volume. The idea was to play for a secondary breakout from a bull flag, which we appear to be seeing this week. With plenty of shorts still in this name, I believe the possibility of an intense squeeze is still a distinct one. I intend to sell before earrings on January 25th.

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