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End of month and end of quarter

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The end of month and end of quarter dynamics should keep the market in bullish mood for sometime. Over eager shorts are learning a lesson in why profits on the short side should be booked fast. Last week there was a lot of chatter about this or that stock is breaking support. Today many of those stocks have rallied violently.

If you look at the sector trends it is apparent where bulk of the selling at quarter end is concentrated. Yesterday there was a news item about how Fidelity has lost more money than Amaranth in Energy sector. The sector trends are also showing clearly where large amount of buying is concentrated in anticipation of good moves ahead.

Individual stocks continue to offer some good opportunities and as I said on Friday, the rush to write obituaries about market is premature. It is currently a stock pickers market. There are number of good breakouts like DJO, KNOT, CROX, TWX,etc.
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2 comments:

Unknown said...

Yes, I have to thank the bears for giving us the juice to go higher. Some of my small caps ( HLIT, SNWL, VSNT ) had a good day andf the homebuilders were screaming!
T has been looking good also. Curious to see how the week pans out with quarter end. May need to lighten up later in the week.
GT

Pradeep Bonde said...

First thing in the morning I saw the blogger sentiment at 50% bearish . Highest level since it started and I was excited about an up day. The bears provide good fodder to market by going short and doubling down on shorts.
http://tickersense.typepad.com/ticker_sense/2006/09/ticker_sense_bl.html