The indicies closed at session highs today. Not a big deal in the sense that the market is stuck in a range these last couple weeks, but important to use as a guide when reviewing your current holdings, or new positions you are considering.
For the last few weeks, we’ve hit a rotational spot in the market. Rotational meaning this becomes a great location to take profits on the stuff that led you these prices and use that capital to start positioning elsewhere. Take FB and BIDU as an example. These are stocks that have wanted no part of the market rally this year, yet are seeing fresh money put to work at some pretty rich prices.
Over the last couple weeks and moving forward, it looks like we’re going to continue to see this happen, until we’re ready for the next leg up. Take note of your stocks that are weaker than the market, while it grinds in a range. It will be the stuff that gets hammered when prices are ready to pull back. Also look at what is pushing the market up day to day:
Solar, Biotech, Retail, Materials, Energy, Regional Banks, etc.
The market looks like it might want to cash in some of its bigger winners, and allocate into stocks making initiative moves here. The attitude of individual stocks during the next couple weeks will reflect who will be stepping up to leadership roles, pushing the market to another high.
OA
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OA, I know that you own some Indian stocks. Do you think it’s a good time to make a play on the banks, IBN in particular or do you think they still have room to fall with the weak rupee. Looking forward to the service you are going to be offering on this site. Thanks.
I prefer foreign banks here as opposed to domestic, yes. IBN a good play here.
I sold my BIDU before the close yesterday for what I thought was a nice profit . I did nothing all day except stare at the screen .
Horrible feeling .
I did the same with FB. Sucks.
I’m so damn bullish on that stock…hard to have nothing on for the last 30 points.
I remember vividly you saying when $FB hits $38 that will be the market top. Almost there.
@OUS & Jules, I know the feeling.
Hells Yes.
Great post OA.
Would you buy BIDU, TRIP, FB, SBUX,,,etc up here expecting grow more, or pass and let it go ? I’d like to know what would you do as you are true trader. Thanks!
I never chase into strength like that. I’d rather wait.
Thanks. I tend to chase big up day and trapped, because don’t have guts to buy dip. Learning in my head, but difficult to act. next time…
See, I am the other way around. I am fearful to chase with the rest of the market.
It is easier for me to buy when others are fearful and sell when others are complacent.
As Mr. Buffet said. Yes, you’re real trader. I’ll become like you some day, I hope!
With that in mind- what do you think of EXPE here?
Not really thinking about this stock too much.
Jeff…you certainly had it right on FB ..you caught a world of grief on it as I recall. Nope, I did not get any
OA thanks for the heads up on the LNKD weeklies earlier this week. Sold my last piece today for +200%.
Yeah, just booked gains myself.
OA, do you mind if I ask your opinion on the CXO chart? I know Fly is in the name and likes it. Is that a giant 2.5 year pennant we are in? The presumption is usually a continuation with a pennant, correct?
I’m picking up small SDS. Do you think correction coming next week?
One of my best days so far. Recouped from my losing positions. Sold SBUX Aug 70 strike calls today into close at 355% profit. I did not open any new positions for next week. I am going to celebrate today. I want to say thank you to you OA. I get inspired by you.
Fun to watch you doing so well. Congrats.