Do not go around searching for the next NUVA. You’ll be wasting so much time. Instead, try to stay focused on your daily trading plan. I hate it when people ask me “How high do you think XYZ is going to go?” or “How do you find the next lottery winner?” Truth is, they just come on rare occasions and you either catch them, or you don’t. Constantly expecting that you’ll make a killing is comparable to the guy that goes to his local Wawa to buy a lottery ticket everyday. You may win big, but most likely you won’t. I want to remind you to remain focused and aligned with your goals with reasonable expectations.
As for the market, it is still range bound, regardless of today’s move. The SPX and DJIA are trading in rising wedges, both above the 50-day MA and also back within intermediate-term consolidation zones. The RUT looks the best with the highest chance of testing the January highs, followed by the COMP, both of which broke out of bull flags.
Most of the sectors are trading in consolidations.
Channels/wedges – XLV, XLK, XLF
Triangles – XLB, XLI, XLU, XLE
The best one that is holding daily highs and flagging is the XLP (staples). The number of consolidations indicate that there is a much, much greater move coming soon. Personally, I’d pay attention to the symmetrical triangles with near apex completions.
It is March, and I’m ready to buy some gold (IT/LT) on a successful break of the channel. There are multiple consolidation patterns, tight MA ranges, and a neutral range to consider – all of them indicating that a consolidation breaking move should be coming soon.
I always found Doug’s work very interesting over at dshort.com, especially the “Road to Recovery?” diagram. I believe we will mimic the S&P 500 Oil Crash Recovery and the S&P 500 Tech Crash Recovery. Repeating the 1929 crash is unlikely.
I am neutral on the general market on all time-frames and continually stress selection of individual equities as the main way to go.
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we need a good old fashioned dow theory “confirm” of the new uptrend that the COMP and RUT are trying to pull off before I’ll believe anything of the sort
Yes, yes, yes. Awesome stuff as always.
Thank you for the post CA. Always great to hear your thoughts.
INSM BTFO
short spls 23.82
cover half 23.51
the rest at 23.32
kfn 7.37
out 7.34
short tecd 41.21
I am eating a very expensive sandwich
I am very impressed of your consistent posting of trades Purdy.
Whats in the sandwich?
Crow. The stock faked out lower and I was too cheap to cover after it ran beyond my stop when I wasn’t paying attention. Ended-up eating about 1/3 of the day’s profit.
That totally sucks, but hey you’ve got a profit! I’m short /es at 1120.25. Hope I don’t get the sandwich next…..
cover 1118.00, bounce 60min trendline
Nice. I shorted with the crowd at when it broke the minute trend at 14:52 hours …118.50 – holding short for now.
This will be nice for you if 1117- 1116 doesn’t hold! I’m done until tomorrow.
great show tonight John – what great info on volume…you are stellar! your delivery is so much improved from your first show – you imo have the BEST show on Stocktwits – no bullshit, or jokes, or personal shit…just info gleaned from your own experience..kudos to you…the others should take note…man they put me to sleep with all that psycho babble…hahaha
any thoughts on TSTC or CHGY?
Bought $NOVL 6.0893
Sold $NOVL 6.0918
VICL BTFO
did anyone swing $CPE with me few weeks ago?
i’ve been long since $1.97 and don’t plan on selling just yet. i’ve been talking it up over on Ragin’s blog.
you and i are having a field day on that thing right now.
definitely, love it. there’s a lot of clear space above it too. Earnings monday AH though
yo thx for heads up guns
CPE earnings monday? I’ve been in too
end 1.39
sold 1.37
nktr 13.94, .98
out 14.13
egle 5.79
out 5.74
mdvn 13.37
out 13.27
Bought $MDVN Mar 12.5 calls