I’ve taken my foot off the throttle this week and done very little. I occupied most of my time quietly observing the market and my favorite blogs and streams. Several major projects are nearly complete and work flow is returning to its normal clip (read: robot order has been restored).
A less is more approach has worked well as the market dealt with another news heavy week. The markets digested some heavy news, and are now aggressively pumping higher out of a bull flag. The likelihood of a sustained move higher is increasing. We’re seeing some reprieve from TLT today as it loses its 33EMA. We’re also participating in a series of higher highs, higher lows on the SPY and QQQ. Bullish as it is, technicians want to see charts tighten up a bit as violent gaps are still present on many charts.
I came into the week long AWK, DTE and half a SPY runner from last Friday. Since then I’ve added two names to properly occlude my portfolio to what I determine to be a wall of worry in the making. Yesterday morning I bought RGLD and this morning Z.
RGLD is a stock I’ve had much success with during the initial stages of a rally as miners tend to party first and party hard. It pumped HARD June the first and has since retraced and began moving higher. The company reports earnings August 9th and although I don’t foresee the market giving said announcement much weight I will look to scale one or two thirds of the position off pre announcement. The weekly and daily charts both look very bullish to my eye.
Buying Zillow on retracements to its 33EMA on the weekly chart has served the bull well thus far. I like the name as a social/tech name and also for its exposure to real estate professionals. It’s about 15% off its recent highs and reports August 7th. I will scale shares off prior to earnings to avoid any violent reactions, but plan to retain small exposure.
I loved the earning’s report out of AWK. They cite “record pumpage” as a key driver to their huge earnings beat. Markets love record pumpage.
I still have a massive cash pile, around 60%. I will look to reduce my cash position and get into more longs should TLT continue down next week and the indices calm down. Top names on stalk: TPX, VHC, TRIP, and OMER.
My flight response has been stronger than ever this week, but I’ve tempered it and grown a war beard. Although I did extensive research on selling my home, buying a gunship, and pirating in the southern Mediterranean, I will continue earning like a good citizen. In the INTERIM! (peers over cubicle wall, sights exits)
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