7 Things You Should Know About This Market
- Posted by Frank Zorrilla
- on December 11th, 2013
- The market is narrow, so narrow its laughable–in a sad way, yesterday the Nasdaq closed 8 points off its 52 week high and at 13 year highs but we had only 44% of all stocks above their 40 day moving average, and people talk about rotation–ha.
- The Nasdaq closed 8 points off its 52 week high and at 13 year highs but NYSE new high-new low 10 day moving average is at 100.2, it was at 208 on 11/1 with the nasdaq 138 points lower.
- Negative divergences has not worked all year and really irrelevant until we have a price break.
- When it comes to breadth divergences they work a lot better in oversold markets than in bull/overbought/liquidity-QE markets, etc…
- “The market can stay irrational longer than you can stay solvent” comes to mind when I think about the 4 bullet points above, not everything has to make sense.
- Shorts are not working yet, they will, but they have not worked. I continue to look for shorts and have a list of “possible shorts”.
- It seems like any stock that goes up 10% is doing a secondary offering or just plain simply raising money with convertible notes, everyone wants to take advantage of market at this level. We had a year to date monthly high in November with 104 secondary filings, we have 34 already this month. Our previous high was in May.
You can reach me at [email protected]
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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