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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; A New Month, A New Beginning

by ZorTrades on January 31, 2013

in Stocks, Technical Analysis

The month is finally over and the major indices did quite well, regardless if for some more than half their monthly gain came on the first day of year, according to IBD the Nasdaq gained 3.1% on Jan 2 , then it was only able to muster a 1% gain over the next 20 sessions. Out of the sectors the $XLE was up the most for the month a +8.30% and the $GDX led to the downside with a loss of -10.28% for the month.

Yesterday many made a big deal about the small slippage intraday on the $IWM, today the $IWM was the only major index up for the day. And that has been the theme this year, whatever was down today will more than likely be up tomorrow. That’s the reason why many feel that this is a market of stocks, now some say isn’t that always the case? Yes and no, in certain periods a rising tide will lift all boats, that has not been the case this month. We experienced a few days were the indices we rocking and individual names were not moving.

Tomorrow we have 16 economic numbers coming out that will probably start us out with a bang and end with a wimper.

Here’s what stands out to me from the spread sheet;

  • I’m seeing more red, you now have the $COMPQ, $NDX, $IWM, $EEM $IYR $XBI $XLK, $XLB $XLI, $XLY all below their 10 day moving average, some below their 20 day.
  • On a rolling 5 day period the defensive sectors are outperforming every sector minus the $XLE.
  • $GDX is now really oversold, I think many are close to giving up on the miners and it’s close to some decent support–$41 level.

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