The Current State Of The Market

Here are a few things you should know about this market;

  • My watch-list continues to be small and the performance has been very weak, I’ve been harping on this all month.  This is my best health barometer for swing trading.
  • The $RUT is below its 50 and 200 day moving average.
  • We spoke about this over the weekend, we have more stocks down 25% for the quarter than up, currently we have 350 up, 513 down, amazing with the markets near all time highs. “The Bull Market Is Over For A Large Portion Of The Stock Market” –Brett Steenbarger
  • Telechart’s McClellan Oscillator is near oversold levels, it closed at -178 and with today’s gap down we will probably be in oversold territory which is anything under -200.
  • In this environment I prefer mean reversion trades over breakouts.  Mean reversion trades should be in ETF’S and or known liquid names not your local small caps.  When merchandise that has good sales and earnings growth gets put on sale that is when you should get excited.
  • A known technician just made a top call, we had more than 2 puts bought to every 1 call bought according to the ISEE equity only ratio (rare), a bunch of etf’s are below their lower bollinger band including the $IWM $COMP, $MDY, I would not short in the hole here.  The market goes up and down not up or down.
  • Some of the most oversold etf’s; $XOP $XES.
  • These are some of the things that are important to me within my time frame (1-20 days), day traders, long term holders, need not apply.

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Frank Zorrilla is the founder of Zor Capital LLC a New York based investment management firm.  Our goal is superior performance, with preservation of capital as our number one priority. Zor Capital manages separate accounts (both taxable and retirement) for accredited investors and institutions. This structure gives clients access to a hedge fund like strategy while maintaining 100% control of their accounts.  Managed Assets

 


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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