For a day like yesterday you need to be positioned right | stockbee

6/02/2009

For a day like yesterday you need to be positioned right


Market Monitor  




TypeIndicatorValue
Daily# of Stocks Up >4% on high volume985
Daily# of stocks down >4% on high volume  62
Primary# of stocks up >25% in a quarter3363
Primary# of stocks down >25% in a quarter 241
Secondary#of stocks up >50% in a month61
Secondary#of stocks down >50% in a month1
Secondary#of stocks up >25% in a month413
Secondary#of stocks down >25% in a month21
Primary fast  MM 34/13 + 2942
Primary Fast  MM 34/13 - 647

  • Yesterday for a change there was a positive panic. By 11 AM I had received 42 emails from panicky members asking what should they do as many of there positions were up 10% plus and some were overall up for the day 10% plus. 
  • In last 10 days  we have witnessed a burst of buying. There were only 2 negative breadth days in those last 10 days. So most of what  we bought during that period benefited from a surge in market.
  • So a minor correction in the market was aggressively bought.
  • The #of stocks up 25% plus  in a quarter has been steadily climbing. On signal confirmation day it was at 1726 and now it is at 3363.
  • If you look at the trend on the primary indicator, it has not deteriorated at all. In fact more stocks keep breaking out and breadth keeps improving.
  • That is why if you go back and see my Market Monitor daily posts for last few weeks, I have consistently maintained the stand that there is money to be made on long side.
  • For a day like yesterday you need to be positioned right.
  • Besides getting the market direction right, one must get the stock right. 
  • All the methods we trade primarily find explosive stocks so such stocks make those 20%to 50% plus kind of explosive moves in few weeks or sometime days. 
  • So what next continued...

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