What was a 4 day shortened week felt anything but as trading seemed to have come to a stall by weeks close. The week definitely got started on a bang but by weeks end the buyers seemed exhausted and/or just not interested. So what do you do?. Well, if you can't buy anything with potential it gives you time to evaluate your holds and maybe sell some into the 'Green'. It is not the time to get nutty and turn away from what has been working by chasing something just to make a trade. It is always better to draw down you positions into the green then having to hastily sell if this lacklustre tone continues and we really have an exhaustion day when the selling hits hard. What the week provided was for some orderly profit taking and by looking at performance of some DJIM's closely followed in the past 5 trading days, so it was not such bad thing or idea to scale down or add to a strong one or two like CSV.
KRSL 28% SYNL 13% ONXX 12.1 CSV 8.7 TRT 7.3 BW 6.5 CGX 5.9 USAP 4.0 CCOI 4.2 OEH 3.4 GLDN 3.1..and HURC at its highs was up 15% since alert buy in. Taking into consideration the last few days, these returns at the end of 5 days of trading is nothing to sneeze at. The week was not all pairing down positions, there was some buying and adding to these percentage gains in the likes of KBW and to a lesser extend HDNG. The only one that got away was CYNO, it looks the Directors got a hold of the hacked version IBD too and decided to sell in bunches this week. Actually this looks like planned selling again and it has never stopped CYNO before from moving upwards, so we expect this to be a hiccup as well. You could plug your nose and hold your breath till it goes away or you could just sell when a stock is feeling pressure such as this. We prefer to sell and not feel the pressure possibly take down a stock of ours. The stocks above are the primary hit/ hold list for DJIM, we might have reduced exposure in some like BW after a big run but these are also the first we'd be looking to throw money back at in the upcoming trading week.
What probably got us through the week was the continuation of the solar plays. Right now, JASO FSLR TSL are providing more than ample opportunity to swing a trade. The good thing is seemingly there is always one moving, so at this point we are hitching a ride here and there and not asking for names. VTRU VARI , we are waiting on patiently to make a drive for new highs and jump in with some enthusiasm. The problem is the techs just don't want to lead this NASD to higher ground.
So...despite the selling in most sectors for 3 out of the 4 days, the NASD and Russell finshed the week up about 1 %. The Bull/ Bear fight in full force, except the fighting ain't that strong in either direction. Hope this week is a little more interesting and some conviction comes back. In the meantime, DJIM will be stay in its own ring and will be after new earning stocks to punch out some profits with.