I sent this note out to my clients earlier in the week. If you are interested in our Managed Account Products, please email me at: jfahmy@zorcapital.com. After QE-1 ended, the market dropped -17%. After QE-2 ended, the market dropped -21%. Now that Operation Twist/QE-3 is over, many believe the market will drop again. In my [...]
In a Blog Post on September 22, I wrote: "If you are a trader, there is nothing wrong with raising some cash and waiting for more positive signs to appear." Since then, the market has continued to see distribution (professional selling). Last Thursday and Friday (10/2 and 10/3), the market bounced from an oversold condition [...]
Today (10/2/14), the market sold off early but rallied back on strong volume. Here are my thoughts: 1) I like how the Russell 2000 $IWM undercut the low it made earlier this year (2/5/14) and outperformed today. The index has led us on the way down. Now, we need to see if it can lead [...]
I discussed the following in a Market Video over the weekend. Here is a summary of the important points: 1) In my 18 years of trading, there have been 4 years where the market grinded higher for almost the entire year: 1999, 2003, 2009 and 2013. It's important to look at what happened the FOLLOWING [...]
First of all, this is NOT a prediction post. I used to post them for fun in the past, but that's all they were...for fun. I'm not a big fan of predictions because 1) NO ONE knows where the market it going and 2) We are all allowed to change our minds based on the information [...]
On Wednesday night (8/21/13), I sat down at my desk to start my evening stock screening. An UNUSUAL sequence of bearish events occurred: 1) I went to check email and I received 2 separate notes from clients. The first one said: Thank you for protecting my IRA during this correction so far, please continue to [...]
On 5/28/13, I wrote a blog post about how I lightened up my equity exposure. The S&P 500 was at 1660 and proceeded to drop over 60 points. When the S&P 500 found support on its 50-day moving average (around 1600 on 6/6/13), I began to increase my exposure as discussed here. Since then, the [...]
On Tuesday night (5/28/13), I wrote a blog post about how I lightened up my stock positions and reduced my market exposure. At the time, the S&P 500 was at 1660 and proceeded to drop over 60 points into last Thursday (6/6/13). I began to increase my exposure around these levels for the following reasons: [...]
Back on July 22, 2011, I was long 6 stocks. A sharp trader friend of mine looked at the 6 charts and said: "Those are REALLY good setups, if they fail, the market is screwed." Two trading days later, I got stopped out of the 6 stocks and went into 100% cash (I wrote a [...]
It was nice to see some subtle signs of strength in the market today (11/1/12). By no means are we out of the woods, but I did notice a Day 6 Follow Through Day (FTD) on the S&P 400 Mid-Cap Index ($MDY). For those of you not familiar with the FTD concept, I suggest reading [...]