As the market meandered near the flat-line in the morning, you as a trader begin to look over the Shadowlist to see any trends developing. What you see today, is what you see many days lately and that’s pockets of strength in stocks linked to any individual news. IE., First hour of trading,MCP >10% on an acquisition, APKT >5% on target price increases and the flip side SODA down 10% on a 5mln share offering, NVDA on price decrease.
Unfortunately, a sidelined market consists of days like this as traders jump on anything making news, even if it is as irrelevant as a price tgt increase without an upgrade attached. Other more important trends were visible and that’s where ‘slower’ money is going instead of ‘fast money’ looking for a quick flip in and out. (see below). If you pick up the relative strength early on, you can dwindle your Shadowlist trading list from 60 names to maybe 10 to concentrate on intraday.
By trading close, a meandering market continued and the stocks/sec’s noted here kept outperforming and/or underperforming. Nothing really changed all day.
The SOX once again weighted on the market as the biggest underperformer <1%. AMC, TXN bought a grandfather of a semi stock for a huge premium. It will likely be a very temporary boost as pre-announcements possibilities are first and foremost in investor’s minds.
Shadowlist
■Momentum/ earnings/ winners of ’10 – Last week we noted strength in Chinese Internet related names, once again SOHU BIDU, SINA were up 3-7%.
■Commodities - Relative strength in Ag’s/ Chems continued to follow through post USDA report.
Demi/ YourPersonalTrader
Apple Inc. will have its weighting
in the Nasdaq-100 Index lowered as part of changes to the gauge
by Nasdaq OMX Group Inc. to better reflect company market
capitalizations.