..tired signs again?

First post-INTC, judging by the ES tone tonight, the market looks at flawless execution (INTC) as a non-event or it’s just a lazy bum looking forward to the 3 day weekend.  It was pretty obvious by >2% pre earnings day INTC  move,  it would be impossible to move the behemoth following results,  no matter how flawless they might be.   We should just be happy it didn’t disappoint and not worry that the ES futures didn’t ramp up.   So far this is a repeat of LLTC  earning, a big player in space, suggesting many Semi’s, particularly INTC may peak shortly in their own metrics(gross margins) and therefore stock price.  It doesn’t mean Nasdaq and /or market has to stop grinding higher as there is always ‘rotation’ even amongst the technology groups..eg software/ hardware from Semi’s.

As far as market activity today,  the early week losses have been made up and the theme remains the same of buying on any weakness, still no conviction to chase the market too much higher.  Lately, any bad news has literally been shrugged off, either right away or if any selling ensues it is bought eventually.  We haven’t had back to back downside days since early December.   The market needs a ‘ BIG’ catalyst in the short term and we have no idea what this possibly could be on the positive side to go higher.  The odds are always better for a surprise ‘BIG’ negative, so we must simply ‘trade’ the upcoming individual earning surprises or sectors that get momentum.   Such, was the alert idea on Sept 8th to buy lodging/hotel stocks HOT/ MAR.   This was the standout group today as both have broken out in the past 2 days and now are up ~7% since.  The “Shadowlist” is not only comprised of stocks we trade, it is also comprised of stocks to see where the money flow/momo is day to day giving you daily options as to where to put our money in or take out.  

Next on deck, JPM ,  even though the market inched up to a new intraday high of 1150, it is still showing tiresome attributes tonight possibly and the JPM report is unlikely to be a ‘BIG’ catalyst to the upside.  The weekend may provide more than direction than INTC/JPM.

..it ain't rocket science

On a business trip?… grab a  room at MAR/HOT..get yourself a SBUX and order a flick at NFLX.   Okay, if you’re a DJIM..u ain’t getting SBUX , its not on the shadow list and it isn’t BF.A or STZ …. but the other 2 are moving in front of our eyes.   One is the hotel sec/consumer discretionary.. (MAR HOT), we’ve covered as part of recovery trade and the other (NFLX) is in the Earnings winner column since last q.  The importance of a good ‘tradeable’ list prevailed once again…

As traders,  we try to compile a list of approx. 50 stocks of the best of class to monitor daily.. adding and subtracting stocks as we go along.    EPS growth, sectors, sub groups that will show you the money flow that day(s)/ weeks.    The point is,  we are traders and we are here to trade and not spend market hours and non- market hours looking for the next big trade.   Just have the right list and the potential is endless…rotate and rotate the names/sectors.   We all want to have ’lives', we want time with family, friends and have hobbies outside of trading and not be consumed 24/7 by what is an already lonesome gig.   To be honest,  if there was a new edition of trading for dummies handbook, we’d nominate our methodology!. 

Anyway…that’s the market today simplified..NFLX MAR ..etc.  News pops next to a Shadowlist stock..read it and than watch if the money flow comes.   Trade.

Oh yeah..so… who was that masked man who has scared the market since Wednesday noon.   Well, today he put on a different face for once and had no new market damaging revelations.   Even JPM's Dimon agrees with 80% of the reform.     Simply,  this was short covering bounce as impressive as it was, it was short covering on 'relief'.    This is cool!.. it just keeps on showing shorts can’t keep their shorts on for too long as they scamper out the door on any sign of strength.    Oh yeah,  seems the bullet points of the speech were public before Obie’ moved his lips on the tube.   Once he shut them … the bounce really ensued.    The dip buying money was probably waiting a  few points above the 20ma for the move to kick into gear with the speech text in hand.   Yes,  the same 20ma  we’ve noted for the last 12 months as the single best market barometer and alerted again a couple days ago for a oppy’ buy was in play again today.   We would love SPX1175,  but it’s a bugger to get as the fight for 1200 is really the tape battle line it seems.