News:
On Friday, markets reached the mid-way point of December. The end of the year is practically here.
Friday’s trading was choppy. The triple witching was a likely cause.
The indexes ended the day mixed…
- Dow Jones +0.2%
- Nasdaq +0.4%
- S&P 500 -0.0%
- Russell 2000 -0.8%
Sector Round Up
8 of the 11 sectors ended Friday lower.
The winners…
- Technology (XLK) +0.5%
- Consumer Discretionary (XLY) +0.2%
At the bottom…
- Healthcare (XLV) -0.9%
- Real Estate (XLRE) -1.2%
- Utilities (XLU) -1.7%
Why only two winners? Consumer Staples (XLP) ended the day unchanged.
Technicals:
The S&P 500 is ready to return to balance…
After smashing through a critical resistance level, the index, which tracks 80% of all market cap, became extremely overbought.
A retest of the marked level would alleviate the overbought pressures.
Your latest readout…
- The VIX is bullish low
- RSI levels all remain overbought
- The put-to-call ratio is neutral
Timing:
Every year, around the 15th of December, beat-up stocks get a little more beat up. But it provides an opportunity for nimble traders
- Stocks making new lows tend to bounce
- Tax selling is usually done around this time
- Historically, these stocks tend to outperform the rest of the market through Feb 15
We are providing a list of our favorites. How you trade them is your decision.
We will exit our positions by mid-February at the latest.
- North European Oil (NRT)
- Express CAyman (ZTO)
- 374Watrer (SCWO)
- 5E Advance Materials (FEAM)
- Altisource (ASPS)
- Amtech (ASYS)
- Icahn (IEP)
- Largo (LGO)
- Quipt Home (QIPT)
This trade is so consistent that it’s been called the only “free lunch” on Wall Street.
Watchlist:
*Low Float
^Open Position
*IMMX on watch
*OPFI support at $4.25
^*MYO support at $4.50
ALXO support at $12
CRGX support at $17
STTK on watch
ABSI support at $2.50
ASPN support at $13
PRCH support at $2.20
JBGS support at $17
Secondary watchlist—float about 100 million
GPS support at $20
HPP support at $8
NMRK on watch
GOTU support at $4.50
BVN on watch
S support at $24
LYFT on watch