Indices are going nowhere fast.
In last 12 trading day's, indices have stayed in a tight trading range with nominal highs made.
12 trading days ago we were @ 1849.44.....then we made a high of 1850.84......now we are back @ 1838.70
Reasons for this lethargic TAPE are many, some of them are:
- Earnings so far are struggling.
- Chinese data are pointing to slower or struggling growth.
-There is rotation going on to new sectors
- Housing data is sluggish
- Overbought condition still remains.
-Traders & Money Managers are waiting for pullback.
- January indicator is negative
SO...instead of worrying about where indices are going, focus should be on finding stocks which are bucking the trend or maintaining leadership.
Gold is definitely on the move with highest close in a month...has not performed this well in 2 years.
Airlines are maintaining their leadership role.
Technology is spotty...many struggling.
2014 is shaping to be a lot different than 2013 where selectivity may rule.
2014 may prove to be a "strictly stocks pickers market"
Know the changing dynamics & react accordingly.
It is never easy in Wall Street......
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hey Saleem,
Sold SB @ 9.944. The $BDI is really struggling here, and while that is typical seasonality, I wonder about the how deep the correction might go this year.
Stocktrader
Hi Stocktrader,
This is a volatile sector.
Saleem
Hey Saleem,
Added to AAL @ 30.457 after DAL's nice results and expectations of great synergies from the merger and shareholder friendly actions like dividends or buybacks.
Stocktrader
Hi Stocktrader,
That is a good move in adding to a strong stock.
Saleem
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