7-7-2013 Comments

I was out of town most of last week and just monitored my two positions (TSLA and OSTK). The action of OSTK caused me to exit that position. TSLA has broken out from a high-tight flag formation. The breakout volume was substandard so it will be on a short leash to prove itself.

I have uploaded a new watchlist in the Thrust Section. On the long side are: ACT, AMBA, CPA, KORS, LOPE, NUS, OAS, PKG, SN, SNTS, TRIP and ULTI. Thrust alerts by the way are not buy signals. Thrust alerts should be interpreted as the tracks left behind by institutional action. Institutional interest in a stock can be a good thing. So the proper approach to a Thrust alert is to go look at the chart and check to see if it is in a good buying location such as breaking out of a basing formation or bouncing off of the 50-day moving average (and occasionally the 10 or 20-day moving average).

A market study that I have wanted to perform is taking a look at holiday market action and the follow up activity when the holiday is over. My belief (from less than adequate study) is that holidays show reversal action from the ongoing trend and the ongoing trend resumes when the traders come back to their desks. If the trend is down a holiday week would be a bullish week with light trading volume for example. Last week would have had skeleton crews manning the trading desks and we will see what happens tomorrow when they come back. There seem to be an adequate number of leading stocks setting up which often precedes a successful rally. We still have the market in correction and are waiting for a follow-through day.