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Posted by ZorTrades

Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker.

The View; Grinding Higher

by ZorTrades on January 11, 2013

in Stocks, Technical Analysis

The market continues to grind higher frustrating anyone who is short and thinks that this move is done in the short term.  A lot of money comes in at the beginning of the year, a lot of senseless money at that, money that is not looking to be prudent, it just wants to and needs to be in.  Stocks continue to act well underneath the surface even though I did not notice many set ups yesterday that fit my definition of a good set up.  My sense is; we won’t get a significant pull back until after options expiration, just a gut feel.

Looking at The View you will notice that the XLV and the IBB are now trading above their upper bollinger band, a gap up today might provide a mean reversion opportunity in those two names. The XBI is now up 8 days in a row and its also set up as a mean reversion trade for those that have experience with this type of trading, if you don’t, then; ZorCapital.

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