Well we got blown with all sorts of data…none of it conclusive on anything. Along with that our local tax collectors were flooding some rumors of trader tax. In the end all the data and all the rumors led us right where we started a low volume day with no movement. Really without a big dump in the dollar or some unexpected news I doubt we push to new highs.
I usually love this week and Christmas time. I used to refer to it as Penny Pumper week as the only action is usually in low volume stocks where the message board crowd gangs up together and runs up no name stocks. But since I missed the spectacular “crack” run in $seed and got stuck with her fat friend with great personality $feed I no longer feel the love. I wasnt really feeling the action so I spent most of the day making new watchlists. Longs, shorts, momo, swings. As SG keeps telling me “you don't got to f*cking trade everyday, pick your spots” ( i added the F*cking hehe)
The one thing that is obvious is the market is no longer in fullblown meltup. I've learned the lesson the hard way the last 2 weeks as I'm not every ten minutes earning the right to say “booooooooooooom” they are coming harder and tactics have to be adjusted. The market is going higher that I'm pretty sure of but stock picking is coming back into play. I know personally I've been a little lets say cavalier in taking on risk but my 50/50 results of the last 2 weeks have shown me I need to make adjustments. But rest assured I have a plan in place that will be perfect heck I've been lighting my neighbors cat on fire for years in celebration of my eggregious victories and I will be back at it in within the week.
I'm going to be adding a lot more par-time trader type swings as many readers have asked how they can trade with big gains and not have to be at the computer all day. To be honest I make similar returns in my swingtrades 'as I do momotrading smallcaps.
Here are a couple I like for breakoutpullback plays that actually based on their earnings could run for couple weeks strong
A nice low volume pullback close to the bottom of the breakout bar should give you a great low risk entry. Stop a little under 36. 1st target old high, 2nd…who knows
For a spec retailer play I like $hott it looks like its been crushed due a declining of same store sales and estimates going to be lower than previously thought. This is all true and not very good. But it looks like it has bottomed and after its beatdown company is pretty cheap. Company has over 700m in revenue with 0 debt and 80m cash on a 200+m market cap and oh yeah it makes money!. Looks like it wants to fill that gap.
I like this one too!!! if you can tell me why I will give you a surprise
