There is very little participation (discussed before, will write another post shortly about that term) in individual symbols to start the year – just like it has been the majority of the time since the big top in the Russell (IWM) in Feb ’21. The SPX and NDX (QQQ) have done very well since 11 months ago, but those index rallies have masked a great deal of weakness in most stocks, especially smaller ones. January should start off with a bang in the stock trading world, traders etc coming into the new year, but this one has been very weak and subdued – with little participation. This environment (counter to the January “rule” meaning look out for the opposite outcome) continues to tell me that what I discussed (right into the December index lows) is coming – meaning a big top in this quarter – that chart has already been posted. I myself am finding some opportunities in almost exclusively very small low floaters (will keep posting those trades), but it requires patience and ONLY trading the actual BKOs and NOT doing the pre-bkos, those terms discussed numerous times.
Oil stocks have been the #1 group for several weeks (I have a post written, check archives, into oil’s most recent intermediate selloff. discussing why the oil stocks are setting up to soar). Another group has been the traditional, not the phony “electric”, autos. Ford (F) has a beautiful daily/60 minute chart, is at all time highs. In the charts below, F did my bucket setup with a flat base – bullish tandem. GM did a false #1 bko bko with a spring buy setup. All discussed below.
Leave a Reply