When stocks switched over from fractions to decimals several years ago, I didn't know what I was going to do but I knew I'd adapt. When the markets reopened on September 17, 2001 following the horrific terrorist attacks, I didn't know what was to happen but I knew I'd adapt. When trading volume fell through much of 2004 following the volatility of the previous few years, I was scared but knew I had to adapt. When the markets had multi percent changes on a daily basis in the tumult of the sub prime crisis, I wasn't sure what was to happen but I knew I had to adapt. When there was discourse of changing short selling rules last year, I wasn't sure what was to happen but I knew I had to adapt. Things and circumstances perpetually change in the markets. Many times from these disturbing circumstances, opportunities can be created. For instance, when the markets were so volatile a few years ago, I cut down on my size but held on for bigger moves. So, if you're faced with a potential worrisome change in your trading career, do two things. First, figure out an alternative to get around the change. There inevitably thankfully is an alternative all of the time. Second, have confidence in yourself. Period. In short, when distressing circumstances occur trading-wise, realize that you better adapt and you better have confidence in yourself...else you won't be trading for a living much longer.
Markets in Asia were generally higher overnight with Hong Kong up 0.8%, Sydney 0.3%, and Singapore 1.2% although Tokyo was off 0.6%. However, European stocks are giving back a portion of Friday’s gains as the bourses close when Wall Street was on its highs with London down 0.8%, London 1.2%, and Paris 1.3%. Oil is sharply ahead by about 3% with silver up 5%. Gold is up 1%. The dollar is quiet as are bonds. Futures are mildly higher. It’s interesting to note that both the VIX and the Dow were positive on Friday so that’s a little warning sign for the week. Look for a very choppy session with some selling pressure likely early. Commodities will likely tell the tale from there. The focus will likely be on the rental car sector, the shrinking earnings flow, and relative strength/weakness plays.
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.
If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-
Good- The following stocks have good news and/or a strong technical pattern
GMCR- closed near a high after a successful secondary share offering
WCG- closed near a high after posting good earnings
NATR- closed near a high after posting good earnings
OXGN- closed near a high
CALX- closed near a high
SQNM- closed near a high
ACHN- closed near a high
BKS- closed near a high after a brokerage upgrade
DG- received raised $72/share cash takeover bid
BSFT- good earnings
SLW- decent earnings
SYY- decent earnings
X- mentioned positively in “Barron’s” over the weekend
MOBI- decent earnings
Bad-The following stocks have bad news and/or a weak technical pattern
NTSP- closed near a low after posting bad earnings
WBMD- closed near a low after posting bad earnings
OME- closed near a low after posting bad earnings
TPC- closed near a low after posting bad earnings
RBCN- closed near a low after posting bad earnings
RIMM- closed near a low
GGC- closed near a low
NQ- closed near a low
WBMD- closed near a low
Earnings:
MON MAY 9 BEFORE
AUXL BSFT CDE
HL HOGS KWK
LPX NAT SRE
TSN VRX
MON MAY 9 AFTER
AG AGO AONE
ATVI BID CLNE
GSM HMIN IDTI
MED MR PANL
RAX RST
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
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