Your Personal Trader - DJIM Journal 2011

Fittingly, the big downside on Friday noted as purely a ES (futures) move continued its’ shenanigans overnight squarely hitting a low of ES1262 (note SPX 1060’ish technical levels here) and proceeded to crawl a total of 23 ES handles to close as Egypt was signalling some headway at least for today. It didn't look like a ‘ million man “ES” march’ , but really more like a man or two march given the general quietness of the market. Ahead of some important Macro data incl. US SM on deck, ECB meet-ups and jobs#, you hope this wasn’t the bounce discussed yesterday that comes ahead of selling by the ‘man or two’, who marched it up today. Anyways, the broad market shenanigans are not our concern as our strategy is to play individual stocks off earnings and/or sector rotations.

Shadowlist

Momentum/earnings/“winners of ‘10 – The ‘hiccup’ outperformance of the clouds/ momo/earnings of ’10 played out as these stocks ‘underperformed’ (CRM NFLX VMW down, others just flat), the market today. AMC-APKT is one to watch on Tues.
Commodities – The Oily (energy) space ran with ETF’s like USO OIH +2.5% garnering most of the markets attention. CRR hit a fresh intraday high at $117, FLS made new intra’ hjgh before pulling back some late in the day. CLR/ CRK are previous DJIM Haynesville plays we’re familiar with, so if this ‘energy’ streak continues we’d look for potential trades in these sorts. Generally all cyclical sub groups (industrials, materials, energy) were helped by CHI PMI. Note- China may not hike again into their NYears as previously thought, so commods’ should act well till the day comes shortly when we’ll know for sure.
Q4 earnings update – In regards to yesterday’s note, SOHU 4 point gap up and immediate loss of all the points was a little eerie, but it eventually got it all back >5% day, so earnings reactions are still okay. The market will now become focused on CSCO coming up for the first real ‘January Q included’ effect. SODA nch, OPLK were the best mid caps listed. *AMC- BIDU IRF , strong earnings to watch.