A Few Thoughts About Today’s Price Action (8/6/13)
- Posted by Joe Fahmy
- on August 6th, 2013
Here are a few thoughts as I run through my nightly stock screens:
1) Coming into today (8/6/13), I had 9 stocks on my watch list. For the first time in a while, only 1 of them triggered. The rest failed miserably, which is fine because I didn’t trade any of them. However, it does raise a small red flag short term.
2) I came into the day with 14 positions and got stopped out of 5 of them.
3) Of my stop outs, a few were in the Biotech sector. This sector has been THE leadership group since the March 2009 bottom. Some of the weakness could be due to REGN’s earnings. I certainly wouldn’t bet against this group, but some stocks may need time to setup again.
4) After this week, earnings season will mostly be over and we are heading into one of the lightest volume periods of the year. Many people will go on vacation the last two weeks of August to take advantage of the extra Labor Day holiday off (Monday, Sept. 2). Light volume doesn’t mean the market will be bad, but it is something to keep in mind. Also, there will be very few economic catalysts (Job reports/Fed meetings/etc.) until September.
While I am bullish into year-end, I plan to proceed with caution over the next few days and let the market prove itself. I’ve turned cautious about 6 times over the last year and EVERY SINGLE TIME, the market stabilizes and moves to new highs shortly thereafter. So, I will definitely keep this in mind. Also, remember that everyone has a different time-frame. I simply choose to play defense and use lighter positions until the market proves to me that it’s ready to move higher again. Good luck trading!
I can be reached at: [email protected].
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience...More »