As I look at the charts during the evening, and see the dramatic rise off the lows, I get very nervous about not taking profits, and ducking in the nearest fox hole, (which we have to a certain extent, as we have been net sellers in our own trading the last couple days). But, since we live by our internals, we try to march on without looking down. And, just as we would say when the market is oversold, we have to recognize that it is presently a little overbought.
The market internals, which include the screened stock ratio, weakened Thursday, but still remain positive. So while we hope to see a drop in prices so we can pick some good stocks at lower prices, and closer to support, we just hope that we can pick stocks that out perform the average. The screened stock ratio saw both sides of the equation rise, but the gap between the bulls and bears narrowed at 13.6 to 5.9 favoring buying.
As the techs continued to rise, more and more have broken their down-trend and have shown up on the screening. We may be a little heavy on the semiconductors tomorrow. Also, a few of the stocks in the watchlist have relatively low floats (CLRN and ZIGO at least), you might check those before you trade if you are adverse to handling those, (as I am). What was interesting was that the short screening included two well represented groups, healthcare and energy.
Lastly, note that we have a position in DISH.
Long: AMKR, ANF, ASMI, CEFT, CLRN, DISH, FDRY, HSIC, RDN and RX.
Good Trading!!
Sam
savvy-trader.com |
