Thursday, January 24, 2013
Wednesday, January 16, 2013
Markets are digesting the big move since the breakout on Jan'03. Small caps are clearly leading the pack. We are now in a overbought zone and many small caps that have been rallying seem to take a breather. But remember, overbought zone can remain overbought for a long time. The Market action continues to be positive for the bulls esp. small caps. Follow proper risk management while placing trades and cut your losers quickly.
Thursday, January 03, 2013
Markets roared and soared ahead on the news of fiscal cliff deal. Each of the market indexes I track viz. DIA, SPY, IWM and QQQ all tacked huge gains of 2.44, 2.56%, 2.94% and 3.18% respectively. The last two trading days in the indexes netted around 5% approx from the lows. There is no arguing against this move since breadth also tracked high which we haven't seen in over a year. Having said that, the markets now need to digest this big move over the last two days. The logical and ideal course for this market is go sideways for a few days, digest the move and resume the uptrend. Perhaps, in this phase the breakout of stocks have a more likelihood of following through given that there is a breadth thrust. Let the price action dictate the next course of action.