7 Things You Should Know About This Market

  1. 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.
  2. 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.
  3. Negative divergences has not worked all year and really irrelevant until we have a price break.
  4. When it comes to breadth divergences they work a lot better in oversold markets than in bull/overbought/liquidity-QE markets, etc…
  5. “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.
  6. 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”.
  7. 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.

 

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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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