I was looking around at FinViz to see if I could find any interesting charts and I noticed the top gainer, Atrium Inc. at a gain of 80+%. I checked further and saw a tiny $13M market cap with a lousy looking website, post-reverse stock split to stay listed, post legal battles, etc.
I cannot believe SeekingAlpha publishes ‘fundamentals’ based articles on tiny stocks like this. How many times have their editors rejected my material because they want actionable stock picking and company fundamentals, not TA? A lot, that’s how many.
We have been working a theme lately about the mania going on in US stocks (some valuations are not overly manic but policy sure is) and also the one going on in the mirror (a fun house mirror at that) in the ugly precious metals sector.
We are in a time of utter reverence for great and powerful Oz-like people doing not so great things to the rates of interest that would be paid to savers and prudent people (Zero Interest Rate Policy or ZIRP), and doing wonderful things for leverage (substance) users, speculators and asset owners (MBS and long-term T bond buying).
I shorted this one yesterday as a strict chart speculation. Faro Technologies (FARO) is a company I bought in the low single digits a decade or so ago and rode to 24 I held it as a sincere investor after having them demo their products for me in a past life as a manufacturing guy.
Now, it is a successful and quality company that is also over valued and tagging along with the 3D printing/scanning hype (DDD, SSYS, etc.) so I thought I’d add this one to the ongoing Facebook short. FARO was added short at 53.37 yesterday with a very clear stop loss at the red dotted line noted on the chart. [edit 11.27] Well, there goes the stop.
NFTRH 266 noted:
“I am also on a third go round shorting Facebook based on its chart and my view that it is an over hyped company where people you used to know make annoying updates and upload pictures of food they cooked for dinner.”
It also has had a toppy looking chart. As long as FB has remained below the 50 day moving averages, it has been a good downside candidate. The stop is the downtrend line, but FB must clear the 50′s to neutralize its bearish trend.
NFTRH subscriber RK sent me a request to have a look at the chart of ENTA on Nov. 4. Here is my note back to him along with the chart…
“Buy around 19. Stop around 18. Sound good?”
It dropped into the support zone around 19 within a day or two and I bought. Here is the chart today (new format), the day on which I’ve booked my 25% profit.
This was one of the X’d out symbols from yesterday’s NFTRH promo post. It’s not highly liquid and I felt I’d be selling shortly, so I did not want it shown publicly for obvious reasons.
The Bank Index has led the S&P 500 since the Fiscal Cliff drama a year ago. Remember that long ago theater that the market used as a sentiment nadir that launched the current rally leg? Remember how the financial world was ending, yet again?
With the Fed on the job, lending free funny munny to the banks via ZIRP, the fear has been thoroughly transformed to today’s current manic speculation. This will blow out one day and when it does, it will be Silver circa spring 2011… or the Nasdaq 100 circa 2000.
BKX-SPX ratio, from NFTRH 266
But for now, an important leader ratio has held support and looks like it wants to turn back up. Above is the weekly view of BKX-SPX.
Well, I don’t know if Triple D has whipped up fear in the momo traders yet, but I am taking profit on the 2nd and final batch of puts today @ 110%+. 24 hours, in and out. My self esteem as a trader has been flagging lately (no pun intended) and this week – both in longs and in a bear position like this one – is generally making up for a lot of the recent aggravation.
Sometime you need confidence as a trader and right now I am feeling it. The market just feels right all around because it doesn’t feel like every doofus with a greed impulse can make money going forward. It’s gonna get woogly for the next few months folks. That’s what I think.
Woogly does not mean bearish, but it does mean know what you hold and why you hold it.
Ref: Actively Bearish on the 3D Printer Mania