Your Personal Trader - DJIM Journal 2011

While the ES/SPY traders are mired in a tight ‘digestion’ range today, it is the strategy of focus on earnings linked stocks that provided most of the excitement. Although some may see it as “R” at 1307’ish at work, it is also natural for the market to go through a digestion process after a big spike ahead of some potential catalysts ECB-Trichet, Bernanke , NFP #. All in, it’s a wishy washy diagnosis for the broad market. Tonight, judging by ES, market is turning a blind eye to Egypt and region, which could turn costly if too complacent.

Shadowlist

Momentum/earnings/“winners of ‘10 – last section update, APKT was noted as one to watch off earnings and today it seemed to be the play of the day, but it wasn’t the only one as it took fellow DJIM’ BSFT for a similar ride up to >20%. Just like last Q post EQIX meltdown, earnings are once again stabilizing the sector along with M&A activity (TMRK and NAVI). SMid caps are definitely having the best earnings reactions in the marketplace, even though the RUT is not making new highs. QLIK , if you follow a narrow band of stocks per Shadowlist, you get a feel of a stocks habits. In this case if volume comes, it’s usually signals a move pretty soon and that’s why it was alerted to watch.
Commodities – All DJIM stock links to Ag/Coal/ steel are simply on cyclone watch worries. CLF coming to new highs.
Q4 earnings update – AMC, SFLY OTEX strong reports.