Noticing some patterns

Today, there were the most pocket pivots i’ve seen in a day in the scan, 81 to be exact. And this on a day that the indexes was up on pretty low volume. Is this a sneaky signal for a big leg up?

I’m also noticing that a lot of consumer cyclical (apparel), defensive, and restaurants are really breaking out, TGT for example, UA, GIII, Nutrisystem, BGS,  EFOI, DIN, DPZ, DENN, PLCE, SKX, INGR, BURL, CMG, NFLX, TSN (TSN is the LEADER), FOSL, OLLI, GLUU, PRMW, HOFT. Maybe these stocks are breaking out right now because the theme around the market and the strength of the market is the CONSUMER. Manufacturing and energy are down but i keep reading that america is 2/3 driven by consumption and that jobs and wages are still growing despite the global slowdown. This makes sense.

Maybe its time to rotate into these consumer stocks? The more i look, the more that answer is yes.

Engineering and construction stocks are breaking out nicely out of bases. LAYN, VSEC, IESC. Trucking WERN, STB, JBHT etc

Certain bio stocks are setting up nicely as always as well. AXGN, MNOV, MNKD

Gold is basing a triangle flag and looks to continue as it broke out of a huge channel, while the dollar is lacking demand around the 50dma.

FSLR breaking out on two big volume days as well.

Materials wise, chemicals are showing life TROX, OEC, diversified miners TCK, GLNCY

Bottom line is a ton of stocks are setting up right now with institutional backing (pocket pivots). The market is probably moving higher from here and with a high chance of additional stimulus from all over soon.

 

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Sunpower and data storage observation

2/21 i noticed SPWR was rallying on higher volume off the support of the 200 week ma. It’s also tabling up under the channel line, we’ll see how it does over the next couple months to see if the volume readings along the 200 week were accurate.

Also data storage names in the nasdaq seem to all be tabling up for a move. STX, NTAP,  SNDK,  QLGC, BRCD, STLK

Law of Vibration – crazy stuff

If the idea that industrial production and markets follow non-random fluctuations, and if the diagrams that tony plummer drew in his books are lined up correctly, we should be within an intercycle hiatus right now after the previous 32 year cycle ended in 2012.

Plummer says that these hiatuses are the working out of energy still left from the previous cycle, which i see as the computer/internet boom, and they always come with an expansion and contraction (the run-up in . He also says that the hiatus are often marred with political tensions, policy ineffectiveness, labor disputes, and in my own mind, possibly a churning of new technologies ready to explode into mainstream awareness and existence. Ideas: internet of things, drones and robotics, biotech revolution, shale gas/nat gas revolution, renewable energy revolution.

I should be vigilant of unfolding political situations and technology trends (such as mass market upgrade to 5G capabilities before  and around 2020–Internet of things?)

Of course, I will not allow these theories (as they currently stand) to push me to intellectualize about the future of the market. I will stay even more vigilant on what the market is showing me NOW. But this is interesting stuff nonetheless.

Ready for next week

The market posted a clear follow-thru day on wednesday on to make it two consecutive days higher price and volume. The pullback on thursday was smaller volume and at the same time, many of my stocks were up. I still have hope that the market will turn and test at least the top trendline in the channel and perhaps even break above it surprising everyone.

However, challenges are there. Certain looks at the nasdaq show that price has broken below the neckline that formed over the last year and is testing it at current levels. While it seems too obvious for it to break down in the very near future, it’s always a possibility. I’ll be watching for sell signals.