Your Personal Trader - DJIM Journal 2011

Another day, another leech on the back of the Bear!. If only the trading Bear would do as their namesake and hibernate for the winter to save it’s hide!. Unfortunately, the Bull is only given incremental up days, one after another as the lack of short exposure doesn’t allow for many ‘big’ up days. As seen recently (Egypt situation)any short willing to press positions quickly covers at first sign of another failed attempt at downside. Today, 2 hawkish Fed speaks/ China hike didn’t dampen accumulation of shares in the broad market. Even though these are not catalysts to us, it used to be that the market in recent years would gyrate on any small bit of negativity. This just shows the maturity of the market as it’s on one track mind to global economic strength.

Shadowlist

Momentum/earnings/winners of ‘10 – The risk in CSCO’s outlook exists following last Q and is keeping the movers at bay. The only fuel for the Bears this week is the underperformance (2^nd day)of SOX to the tape, but this might be only a condition of some profit taking from the best group so far in ’11. Air out of the NVDA’s semi types is a good thing. On the hand, we are seeing rotation as pointed out in the last few Journals to the consumer sec since late last week and financials as of Monday, which the Bulls can offset with. As far as the fiber optical plays, consolidation is continuing after big up day on Friday and so watch for another entry soon if this has any legs as a trade in ‘11
Commodities – Under hike cloud today.
Financials – day 2 of being one of the market leaders. As per Shadowlist ,we concentrate of GS/JPM and/ or RKH (ETF) for Regionals to trade. But, honestly with earnings plays this Q and retailers this week the plate is pretty full to get overly involved in a trade here.
Consumer – Our retailers/ goods are still moving inline with the tape. Since pre-Friday trade listed DJIM’s are up 6-9% eg. LULU $73 to 80;s, FOSL 73’s to 78’s, RL 108-115’s, PVH 59’s to 63.
Q4 earnings update - this is just a good safe stock that has constantly come across, but because it’s a crawler and unknown it has never been added to trading list. Until now, AZPN is a nice safe stock at 1.3b cap in the software space following a good report.