Courtesy of David at All About Trends
(Reminder: David is available for questions from members in the comment section!)
Groovy huh? And yes the beat goes on, but does it? We had our down for a few hours and here we are the markets are once again higher. Ok we’ll bite, so let’s buy right? Ok, but before we do that we have to ask another question here and that is:
WHAT DO WE BUY?
Let’s see how about these leaders:
Others that fall into this hopped up realm are: SPRD, ARBA, ALLT, CY, CAT, COP, OPEN, POT — should we keep going?
No? Why not. We mean the market is higher and it’s all go go go right?
Ohhhhh we forgot they are all extended. Wow close one there. We almost got emotional because we saw the index numbers green today without looking deeper.
On top of that if you’ve been watching the red bull energy names we’ve been talking about aside from AAPL, (Remember AAPL makes up 20% of NDX 100 index folks, one stock 20% eesh) BIDU, CMG, NFLX, AMZN, etc have been going nowhere.
We think we just might have to build a follow the leaders report soon to really set it home to all of you that there isn’t anything from a low risk entry point to consider on the long side. Remember we are all about letting them come to us vs chasing buses.
Let the lunatics (emotional buy buy buy types who are firmly convinced we are going to 25,000 on the Dow next week) run the asylum folks. SWKS, IDCC and RAX are good examples of issues that are nowhere near any low risk entry point and should you buy ’em right here? Well you have got to be out of your mind. That is unless you want to turn into this guy when the light turns red.
Here are your micro index charts. The pink lines are the ones to watch for a micro trend change.
In summary:
Over the weekend and still stands today we said:
We are still playing it close to the vest and are unwilling to chase issues after the fact. When the rock star energy drink names from the weekend get some sort of Pullback Off Highs (POH) pattern to them vs. this jacked up emotional party like it’s 1999 look to them then we’ll look at them, but not here.
It’s only mid-February. Trust us, there is going to be a lot happening this year and that means both directions.
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