The difference from yesterday's comment is that small cap weakness attracted buyers.
So even though markets do not show signs of breaking down, I still want to point to continued weakness in the oil futures/oil service sector and in materials stocks.
FCX is displaying a negative EV pattern. I wonder who is selling. Icahn?
As a side story, a long time member suggested a few improvements to the Repository and the trade ideas files.
On the repository file, I added a "Historical" sheet, which shows past rating evolution for each stock. I only started it a few days ago, but data will build as days pass. Note that stocks are ranked with highest rankings at the top and the most recent date on the left.
The idea was to detect stocks with increasing/decreasing ratings.
On the Trade Ideas file, I added two sheets: a "Long" and a "Short" sheet.
These sheets rearrange long/short trade ideas by the number of lists they belong to. For example, VOD belongs to three lists of long trade ideas.
It is not because a stock belongs to a few lists that it is an opportune moment to enter a trade. QEP for example belongs to three lists, but both oil and natural gas Futures show negative divergences, which point to a possible selling wave coming on the commodities themselves. This is a possible negative for producers such as QEP. However, QEP issues earnings next week on Wednesday and a strong Pyramid data just before earnings is a positive.
Conclusions:
The NQ8 MF is still very strong.
Shorting the small caps in strength using long dated puts is I believe that cheapest way to trade a possible pullback.
