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We still have one more trading session left in April on Monday, but I think it is safe to say that the stellar April seasonality pick from The PPT has been another dazzling success. I brought Medivation’s April Levitation to your attention in this post on April 1st, and you would’ve been an April Fool to ignore it.

Despite an overall corrective month for the market in April, MDVN opened the the month at $74.37 and currently sits up at $80.38, denoting extremely impressive relative and absolute strength.

Here is MDVN‘s seasonal breakdown. Current members of The PPT and 12631 should click on the hyperlink at the beginning of this sentence to see an even more detailed breakdown of Medivation’s performance over every prior April. Sorry, guys. That one is for closers only.

If this type of analysis interests you, in addition to countless other features, please click here to learn more about becoming a member of The PPT.

MDVN April Seasonality Statistics (Courtesy of The PPT Algorithm)

Stats for the month:

Avg Return	18.03
# months TOTAL	14.00
# months UP	14.00
# months DOWN	0.00
months UP (%)	100.00
months DOWN (%)	0.00

I mentioned UNP last night as possibly offering a Dow Theory buy signal with the transportation stocks, and today that marquee rail operator is breaking out from a long falling channel with decent volume. The biotechs, real estate, and materials sectors are all attracting capital today as well, in addition to the headlines being generated by Apple and tech stocks. As such, I highlighted a few names inside the 12631 Trading Service for members to watch on the long side. I am keeping an open mind here, willing to accept that stocks may have put in a good low if I see charts continue to firm up.

As far as today, it is almost always tough to trade earnings season, particularly on days when The Fed makes an announcement or speech. I am doing my best not to force any trades here, though emotions are running high on Twitter. With that in mind, our chat room in 12631 really distinguishes itself from any other platform that traders use because of the calm, focused nature of our service. Please click on the 12631 hyperlink for more information about joining our service, which is supplemental to joining The PPT. You will see a noticeable improvement in your focus and discipline as a trader.

I will have more after the bell on my video recap.

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…until you breakdown from a bear flag.

We have the makings of a nasty trap that complacent bulls may have fallen into, out for an enjoyable kayak ride only to start sliding down a huge waterfall. Breadth is soundly weak, with the Nasdaq the clear laggard of the senior indices after this morning’s opening gap lower. The retail and consumer discretionary sectors are also suffering some ugly breakdowns after wedging higher over the past two weeks. High-flying stocks like CMG are finally cracking, while the small-caps are seeing a particularly ugly gap down on their daily sector ETF chart, IWM. Heck. even Wal-Mart is getting smacked around.

Thus, risk appetite for some of the higher beta areas of the market is clearly far more suppressed than what we have seen at any point since 2012 began. The bear flags on various index daily charts that I discussed last week and over the weekend in my video recap appear to be confirming to the downside. If the bulls are going to turn this breakdown into a “fakedown,” they had better step up quickly and reverse this move by the closing bell. Otherwise, my sense is that we have some trapped longs that may need a few more down days to capitulate.

My stance continues to be the same: Although I walked into today net short, I still have a heavy portfolio cash position, The cash position is a nod of respect to the fact that this market is still on an overall uptrend, making broad higher highs and higher lows since last October’s 1074 bottom on the S&P 500 index. Hence, there is no telling just how deep or shallow this correction can go.

All of my trades and portfolio allocation percentages are available inside the 12631 Trading Service, a vibrant community for traders that @RaginCajun and I direct within The PPT. Please click on those hyperlinks for more details, and feel free to ask any questions.

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I have considerably slowed down the pace of my trades over the past few weeks. Despite the broad market making new highs, the follow-through to many breakout plays has been somewhat lethargic. Beyond that, we know some areas of the market are very extended at this point. Of course, the leaders can continue to melt up, and my small shot at an Apple short was fairly quickly run over by the bulls this morning.

Rather than making a “hero trade,” the idea was to put on a small Apple short based on the weekly gravestone doji candle last week. If successful, I would short more. If wrong, I could quickly cover the smaller-than-usual position. That is the best way for me to play an occasional contrarian trade that I throw on. At any rate, I still think that the risk/reward profile on the long side for swings is unfavorable up here for a bunch of those extended market leaders.

Overall, I remain net long albeit with a higher than usual cash level in my portfolio, completely transparent inside the 12631 Trading Service. The biotechs are still acting well, including MDVN, a seasonality favorite in The PPT that I profiled here. I am also long several stocks in the materials space, and looking for that group to continue to see rotation. That said, I am ready for just about anything and positioned accordingly for it, including a 3-5% correction which more and more traders seem to be dismissing as impossible at this point.

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Here is a freebie from The PPT Seasonality feature, which offers jaw-dropping statistics at times. I found a stock that has been up 100% of the time in the month of April, with 14 data points to boot. Beyond that, the average return for this stock in the month of April is north of 18%.

Do I have your attention now? Good.

Included in The PPT is not only a seasonal breakdown of how each ticker symbol performs in each month of the year, but also a detailed month-by-month breakdown. As an example, the stock which I referred to above is the biotechnology firm, Medivation. Of course, no trend lasts forever. However, we know biotechs have been hot this year, and even though MDVN has seen a strong run, the seasonality has been too strong to ignore.

Here is MDVN‘s seasonal breakdown. Current members of The PPT and 12631 should click here to see an even more detailed breakdown of Medivation’s performance over every prior April. Sorry, guys. That one is for closers only.

If this type of analysis interests you, in addition to countless other features, please click here to learn more about becoming a member of The PPT.

April

Stats for the month:

Avg Return	18.03
# months TOTAL	14.00
# months UP	14.00
# months DOWN	0.00
months UP (%)	100.00
months DOWN (%)	0.00

…which means that many of our members are actively preparing for the upcoming week of trading inside our state of the art chat room. The overwhelming majority of trading services have chat rooms that essentially go dead after the market closes. However, the 12631 Trading Service is home to the most vibrant and dynamic room for traders to hone their craft in a focused environment, at all hours. As you read this, some of the most astute traders are discussing and refining ideas for the coming week in the market. We push each other to strive for excellence, and that camaraderie is what sets us apart.

Step up your work ethic right now, and join the 12631 Trading Service inside The PPT. Click on the 12631 for more details about joining.