U.S EQUITIES- INTO THE TRADING WEEK, 08.03.15

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Into The Trading WeekPart of YPT’s trading mission statement is..YPT bridges the gap between the retail-investor / trader and the institutional players by filtering out the noise, abundance of information (good or bad) generated through the media/ Internet….lead in recognizing daily event upside/ downside risks ahead of each trading day”. 
 

Time is precious for all of us, the amount of homework a trader can do is endless!. You have economic data, charts, graphs, Macro, Micro, special events, geopolitical to possibly evaluate on a daily basis. You have toys at home, you have mobile toys, you can immerse yourself into the world of trading almost every waking second of the day.  If you truly want to save time, you need to filter what is relevant and what is not to understand and anticipate the market tape. As much useful information as you may find on Twitter, you will find 100X as much useless info to cloud your mind on the markets and your favorite stocks. The premise here is to note only what is relevant to the tape at a specific point in time. Same goes for the Twitter stream. If you ever wonder why YPT didn’t mention this or that event, it’s simply because it’s a non -event in this traders view.

Examples so far in 2015 is the reluctance to get caught up in the Greece/ Troika negotations from day 1. (26.02). YPT simply said the best way to trade equities is to, ‘FORGET ABOUT IT’ (Greece) and concentrate on single stock earnings. Also noted, European ”LSAP QE trumps Greece” and ” DAX Time to get tingly over that #QE thingy”.(03.02). Not a wink of sleep was lost or a stock sold because of the month long negotiations! If European markets didn’t give a hoot, why should U.S equities, you or I ??

The results are in and they speak for themselves!.

U.S equities ran more during Greece/Troika negotations than after agreement, DAX and Europe continue to make new highs (~15%) YTD and we had a blow out earnings season at YPT..“..In Q1’15, YPT alerted multiple SMID’s, which rocked +15-35% post calls. They included (PAHC NOW PAYC QTWO IPGP FEYE) and more in YPT Premium as you know. Just last week, 3 more YPT top stocks knocked it out of the park, (AVGO here since $38CRM blow out and CSGP). All these listed stocks were on our sites SHADOWLIST top ~40 (public) tab entering 2015.”..++‘GAPS and GO’ in NFLX HAR AMZN GOOG AAPL…” . 

This past weeks ‘ITTD’ morning calls layed out the ‘Wall of Worry void and only catalytic market mover was possibly the NFP on Friday, The WAGE number on the NFP# is the only important date the market has this week. It’s all about whether its back to a JUNE hike or if its a few months later”. 

The YPT anticipation of (NFP) to possibly rattle the market back onto JUNE hike fears came to fruition. Only it wasn’t the WAGE # as speculated, it was the actual strong 295K number that provoked the market to slide once the upper range top of SPX2090 broke. YPT recent expectation was that our closely followed barometer QNET would not go much higher short term, “…until the SPX re-visits its place in the upper range it was bound to for many weeks till recent leg higher”.

Well..now SPX is firmly in the upper band after a DJIA -278, Nasdaq -55 and SPX -30 day.

So what now into the trading week?.

The market should have smartly declined once the angst of Greece, Yellen and earnings season past. Instead the market limped around on an empty Wall of Worry canvas prone to what occured on Friday. It’s likely doubtful market reverses quickly, size sell -offs that surprise usually need a few days rest before buyers step up. Those caught of guard may also come in to trim some positions after the weekend. In hindsight, this will likely be a mistake in no time with an empty calendar week. Interestingly, the QNET IBB Momentum trade covered into Thursday’s big day for our Shadowlist stocks, also made new fresh highs after NFP and the opening bell. Unfortunately, the retest fail of SP2090 made everything bleed across the board.

MOMO outperformance noted Wednesday into MOMO rally Thursday,..”Only positive takeaway today is 2/3 Momentum groups showed signs of life early and finished green. Notably YPT’s QNET, which hit recent highs on the head late before backing up last hour, and Biotech (IBB). It’s hard to see market in bad health if these two are at ATH’s”. Same applies after the NFP reactionary sell off. QNET holding 405 is our key gauge on market health…

QNET_march_7th

QNET

Good Trading!

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