Tuesday, January 21, 2014

Another Bumpy Ride - Advantage Bulls

The market gapped up nicely this morning and then knee jerk selling came in - me included in the case of SRPT, which I sold pre market up $1.65 and tweeted about at the time. After the initial sell off the Dow was down by around 100 points at its low. But he other averages, especially the NASDAQ which never went negative, did not get hit to hard.  Eventually the entire market came back and there were some decent breakouts.

BIIB was up over ten points on a beautiful breakout. Lots of intra day volatility, but a great growing company.

JBLU's break out failed. So set your price alerts over today's high. My gut is that the snow storm had something to do with that. But I asked no questions and sold it the second it started to fail for a small loss. Better to be safe than sorry.

GILD which broke out last week continued to run. One of the great biotechs.

TSLA which popped last week way below its old highs was good for a day trade. Short squeeze city again. They are building a huge battery making facility which will hopefully alleviate their problem of lack of batteries. It would be a shame for the battery supply bottleneck to hold up TSLA's great potential.

HDY broke out of a base on big volume but no news. I do not trust HDY as anything more than a quick illiquid day trading vehicle unless there is some news about them hitting oil and getting the monkey of their law suits off their back. HDY is due to spud probably around late March early April. The great Tullow is the operator of this huge concession with big time potential.

PCLN broke  new high. I may buy it tomorrow. It barely poked through.

FB is now in a nice set up. Set your price alerts.

MDSO is also close to breaking out from a beautiful base. Today was an all time closing high, but not an all time intra day high.

MHR broke out to a new high. It is a slow mover.

RDN continued to slowly run and AMZN made another new high. Maybe its time for everyone to realize that AMZN is being valued the same way that the original cable TV companies like TelePrompter were valued during their first decade of life as they made no profits while building their infrastructure.

Lastly, IBM had bad revenues again after the close. Earnings were not so bad, but that was due to all kinds of games like share buybacks, lower tax rates and so on. This battleground stock is one tough short. I scalped a few shorts after the news and guidance were out, but it was hard to borrow. Any way, on the one hand there are well known declining hardware sales. On the other hand, IBM has cash and the ability to remake itself - something they have done before, but something that is becoming more and more difficult as technology passes them by. Then there is Warren Buffett and a strong institutional following. Again, this is one tough short. My general inclination is to hit and run if I get the chance tomorrow, but mostly stay away from IBM. Lets see what if any shorting opportunities we get tomorrow. The bears have the ball. Not a pretty chart. Can IBM break support?

BIG Capital Advisors and Seaview Partners are not responsible for your investment decisions. We believe very strongly in our opinions, but you must perform your own due diligence in making your investment decisions.
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