Saturday, December 6, 2008

Video - Weekend Market Summary - 12/6/08

Here is the video for this week. Main points include:
  • Cautious optimism about a rally here but we still have some levels to get through.
  • Market continues to shrug off bad economic news - that is bullish.
  • Automaker bailout and OPEC meeting will be in the news next.
  • Charts I see are beaten down - tells me this will only be a temporary rally.
  • I expect a choppy rally if we get one - will look to take profits when I get them.
Hope you enjoy it and it helps out. Good luck next week - hopefully we get some follow-through and can get a rally going into the end of the year.

**** Here's a link that should work better for IE users if the first link doesn't work


seeer said...

I don't want to tell advices for you (it's a little swanky) but I have to write this. :)
I think you are watching too many stocks simultaneously and every time when you make a list, the stocks are change. :) It's not good because you can not watch all of these stocks all the time and I guarantee that you will miss a lots of moves.
If I want to go long I always watch stocks that are in an uptrend (I have a list) in a relative strong sector, and I always buy them at the supports. Here is my list: AFAM, ALGT, AVAV, ENSG, LPHI, LG, LHCG, QCOR, ACM, ADY, ASEI, EBS (!), OSIR, APOL, COGT, COCO, CECO, CBST, CWT, WTR, HMSY, HOTT, STRA. :) Some of them are familiar for you. Lot's of them are biotech stocks.
I wrote a note with the supports of these stocks, and if some of them come close to the support, I take action.
I never buy beaten down stocks (usually under the 200SMA) because it's just gambling. Yes, I know, they can make big moves within short period of time, but I don't feel comfortable to hold a downtrending stock. It's against my rules. :)
I hope this could help you (maybe to think about things :) ). GL!

Mac said...

To each their own. Just because I have a long watchlist doesn't mean I am planning on playing all of these or even watching them when trading starts. I am just putting them out there and I have my favorites that I will watch more carefully.

The list you wrote are all strong, IBD-type stocks which is good, and I have them in other watchlists that I follow in Telechart. But as I said in the video, I don't really like the look of these "leading stocks" that are out there. They just aren't as impressive to me as I would like to see. Prime example - COGT broke to new highs Friday but the volume wasn't very strong. I don't like that. In a more traditional market, yeah, I would be only focusing on those stocks because they make the biggest games. However, in this crazy market, where rallies probably aren't going to last very long, I want to find stocks that move fast in order to get as high as return as possible. Right now, there are other stocks moving faster and those are the ones I am watching. The IBD stocks aren't working well and haven't been for the past four or five months. They worked OK back in the April-June rally but not anymore.

As I said earlier, to each their own. Good luck.

seeer said...

COGT is a good play if you bought it at 12,5 (that's the support). Btw I don't have COGT.
I have EBS (21), HOTT (7,5), STRA (204,5) and I had CBST (25,01) but I sold it for 27. I think they are very fast. :)
Oil was the perfect short "stock" at least until now (I played it with the DTO).

Danny said...

Great vid Mac

Anonymous said...

Mac --

Where would you enter UGY or DIG on Monday? At the open or wait for a pull back?

Thanks, as always, for your insights.


elkate said...

Hi Mac,

Thanks for your commentary. I have a questions regarding the stocks that are news related such as RMBS. How would that affect your trading if lets say it would break resistence and you know that it is news related, would that make any difference in your trading?



Mac said...

Danny - Thanks. I always enjoy your content on IBankCoin - great analysis and it looks like you have become quite the master with Blocks/StockFinder. I tried it briefly but for now am staying with Telechart.

Geoff - That's a tough call - I think it depends on whether we gap up Monday or not. I still would like to see those levels broken on the indices before getting heavily long. Chasing gaps has also usually been a poor play recently - look at Friday's open for an example. I'll have to look at the intraday charts to see where they are at and go from there.

Elad - I haven't checked on RMBS yet - I do like the pattern though. The thing that worries me is if made this move based on some sort of lawsuit/patent stuff that i think they did earlier this year or late last year, then you never know what is going to happen. If it is a legal-related move, I may pass then. I have to check it out.