Sunday Matinee at Chess Cinemas

I am going to re-recommend a terrific summer film, one of the all-time underrated comedy/drama/sports movies.

Three years ago, I suggested DIggstown (1992). Check it out, if you have not already done so. This is classic James Woods.

Here is what I had to say:

One of James Woods’ best performances was in the overlooked late summer of 1992 film, Diggstown. Woods plays a “good con man” in lieu of just another small-time hustler putting on the con of his life in sleepy, southern, boxing and gambling crazed Diggstown. The clip below features a nice compilation of some of the best scenes from the film. It is definitely worth checking out. Louis Gossett Jr., Bruce Dern, Oliver Platt, and a young Heather Graham all deliver great performances as well.

Enjoy this one on your Saturday, regarding the LVS property.

After the most recent rally to new all-time highs in the Dow and S&P, one of the last branches for bears to hold onto is the small cap action in the Russell.

The ETF weekly chart shows price being rejected from the underside of the declining 20-period moving average this week. Also note the break in steep trend since 2012 is still very much in play.

I will delve more deeply into this ongoing divergence over the weekend.

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As per my blog post yesterday, I took a long position in the ultra-short biotechnology sector ETF, BIS, just now inside 12631 at $16.51.

In the face of the much-ballyhooed ASCO this is clearly a contrarian position that I am taking.

However, I believe it is worth the risk given the still-declining 50-day moving average on the biotech ETF, below. Also note the recent rally could still easily be a bear pennant before further resolution lower.

I am giving the trade some room with a stop under $15.80. It is a starter size position and I will only add if it works in my favor.

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Courtesy of The PPT algorithm, here are the most current top five readings from my “12631 RELATIVE STRENGTH” custom-made screen, identifying which stocks are exuding some of the best performances to the market at-large at any given moment.

I look for stocks whose Daily PPT Hybrid Score surges, while the Weekly Hybrid has been negative over the past week. This can often yield stocks which are emerging from consolidations.

Members can click here to view and save the screen.

Sorted for at least 500,000 shares of daily average volume to ensure liquidity.

Please click on image to enlarge.

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Earlier this morning I sold the final piece of my TWTR long at $32.80 from my $31.81 entry to lock in the rest of the win inside 12631, after selling the other piece of the position yesterday at $34.91 for a larger win.

The risk with trading broken charts, like FEYE TWTR, etc., and more recently DDD, is that if you do not exercise extreme discipline with how you manage the trade then you are too prone to abrupt rollovers in still-damaged patterns. True, the snapback rallies can be fun and exuberant.

But it is crucial to mitigate downside risk, otherwise the wins are for naught or, worse yet, more then erased in the form of substantial losses.

In this case, I sold Twitter to avoid turning a winner on the last half of the trade into a loser, with about a one-point win on the final piece.

All in all, I am pleased with the quick trade in Twitter and would consider reentering if, and only if, the stock can stabilize  next week and threaten to turn back higher. Otherwise, the stock remains damaged goods.