Today is the day we have long awaited. What we are seeing today began yesterday and with any luck it will continue into year end. Yes, the indices surmounted great technical damage to return to annual highs in a matter of weeks. Yes, oil prices cratered sending trillions of pennies into the virtual wallets of the US consumer. Yes, the US dollar returned to supremacy.
But just this week, and really over the last two days, have we seen genuine pockets of strength in the market. Suddenly, there is a bid for your favorite tech idea or brand. Suddenly the best looking charts and paying you for sitting through their consolidations. The stock picker is alive and well and calls 12631 home.
We are at the apex of greatness. There is a buzz in the air, and people know there is serious coin to bank in the year-end dash.
Pile into longs? No, but as I said, there will be opportunities. Find you best setup, your favorite company, and wrap some risk into a trade. Your wealth depends on you keeping a cool head.
A word of caution—do not start shooting anything that moves. You do not need to shake every baby and kiss every hand. You need only as many positions as you can comfortably track and manage according to your style. The last thing you want is an error due to a broad wave of selling. Your levels should be in place and they should be sacred to you. Do not waffle.
The moves occurring today are the sprouts of what will soon grow into great sequoias. Others will vanish in the next brush fire. Knowing when to harvest and when to prune are skills just as important as where and when to plant.
There has been a bid under bid earning gap downs like TWTR, FEYE, GNRC, and GOGO. They were gobbled up. Does this look like participants are cowering in utilities and cash? Follow the money flows.
My book is not overly concentrated in social media or tech like the past. But it is my favorite. Tech/social media tech longs include TWTR, CREE, GOGO, FEYE, TSLA, and YELP. Retail plays are LULU and GPRO. Winter play is GNRC. A few other slow plays are in the book but why bore you? Let’s talk about my SCOK, shall we?
It is not huge, but it is sufficient for the moves it is capable of. The chart is a beauty of consolidation. This is my junk, my republican, and my coal play all wrapped into one.
Hard working men and women are plotting to extract consistent coin from this market. It is the only proper way to move forward.
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