Thursday, February 17, 2011

State of the Stock Market - 2/17/11 - "Individual Stocks Act Better"

We saw another positive session today on Wall Street, although just slightly, as stocks slowly climbed higher throughout the session.   Volume will come in lighter, but under the surface there were certainly some major movers with earnings-related plays and that continues to be a them of this recent move (WTW and TDSC are two that stand out from what I can see.)

Technically, we continue to move higher and that is all you can really say.  What is kind of weird (and maybe it isn't - just something I noticed) is that the moves for the past week or so have not been very big at all.  Looking back at the September to mid-November stage of this rally, we had a fairly smooth ride overall but within that moves there were many days with the market up over a percent.   From December to mid-January, the intraday action seemed to slow down, even though the market moved higher.   Now, from late January till now, the moves seem to be getting even slower but the market keeps going higher.  I don't know if this is a sign of complacency or what - I just find it interesting.

I had a fairly busy day making moves.   I closed my LDK position this morning at $14.37 for a 12.5% gain (entered twice - 2/10 at $12.55 and 2/11 at $13.01).  Solar is a little extended here so I took my profits although this could certainly move higher.   I entered two stocks last night which I showed in the late post - TSLA and HDY.   One was a nice mover today (HDY, although I don't like how it closed) and one was not.  I was stopped out of TSLA at $24.33 for a 1.78% loss.  I would normally have given it more room, but when it fell early and then bounced all the way back to be up at one point, I set my stop below the morning lows and left it there.

I entered two other stocks today as well, both of which were in last night's post.  I didn't really like the action of one of those two late, but it is what it is.  Both are in the oil sector and with crude being oversold, I am hoping for a bounce in these names.  I am also trying to get into one earnings play after-hours but don't know if my limit order will be hit or not.   There were many nice breakouts today when I went through my scans so perhaps that is a good sign for the market, even though we continue to be a little stretched. 

Overall, we continue to defy gravity as this market just doesn't want to rest, so although I continue to believe a nasty little pullback is coming soon, as long as setups are working, you should probably still take them as they emerge.  I do see a lot of nice setups right now so I assume that means good things going forward.  Certainly keep your stops tight and take some profits when you have them due to how far we've gone, but just because we've gone up a lot doesn't mean individual stocks can't go up a little more.  I'll try to share some setups later on Twitter if I have time.   Good luck Friday.

No comments: