Wednesday, January 15, 2014

It's Yogi Time - Deja Vu All Over Again

Is this more of 2013 all over again? Every sell off last year was always met with fast "V" shaped reversals right back up which turned into rallies. This time the market bounced, but the jury is still out. Leadership is all over the place, but is mostly lacking. All of the concerns I listed in my last post still exist.

It's also Maytag time. Like some college kid jumping into an over sized dryer being shaken up and burned in an effort to set some sort of childlike longevity record? We are all in the dryer. Either way today's strong market was almost the opposite of yesterday's weak market. Almost being the operative word.

There were many signs of strength today and I'm kicking myself for taking the afternoon off to attend to some personal matters. There was plenty of action starting today stating with REGN and TSLA. Here are some selected charts:



REGN popped on good news but still below all time highs. In my opinion, the best way to get bang for the buck with high priced stocks is to day trade or swing trade the in the money options. The key is to find a stock whose options trade in volume with relatively tight spreads.







 


TSLA Took out resistance way below old highs on news of beating sales expectations. Still small numbers, but enough to make the shorts quake. The key will be if Elon musk can produce enough batteries to enable TSLA to really ramp up production.




RDN It looks like the breakout is real. RDN is not a fast volatile mover, but it gets there just the same






CSIQ So much for a wished for pull back. Strong stock.




YELP See CSIQ above



 

ABTL Nice pop.


XYL Nice breakout






There are many other set ups out there and many low priced stocks that are moving fast. The latest game has been the advent of on line trading "rooms" where enough day traders are present to literally corner a stock for short periods of time during the day. Nathan Michaud and Timothy Sykes have this
system down pat. They get a oodles of followers who all pile in and out together making their trades almost a fait accompli..

Lastly, there were some after hours fireworks with Chelsea Therapeutics. We shall see if there is anything to work with after it gaps up in the morning.




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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