We had another positive day in the markets yesterday and currently we are looking at yet another green open. Today's payroll numbers will likely set the tone for how the remainder of this week plays out. There is no denying that the first week of March has started out with the bulls in charge.
We were able to break through key technical areas and now we need to see if those areas will become solid support as we move forward. There has been a distinct sector rotation in the markets as money has moved from the momentum names into a dash for trash and the beaten up highly shorted sectors like oil & energy, small caps, miners and minerals, gold and even biotechnology has had some nice action this week. These sectors are still fundamentally challenged but in this current climate its not about that. Shorts are getting squeezed and that is driving these sectors higher.
These counter trend rallies can be very powerful and last much longer than many anticipate. They present great opportunities to day trade for the nimble but it also gets more challenging the more extended we become. Fear of missing out will eventually take over and novice investors will be loading up in stocks and sectors at precisely the wrong time and then we will get a hard reversal. Complacency is setting as the VIX or the "fear index" has come down significantly. February and March are historically the best months for the markets and it appears as though this year may be no different. I am still very cautious and I am selling into strength from my long term portfolio and swing accounts taking profits and building up some cash for short term trading opportunities now and the ability to be opportunistic later when we get another market correction.
Lets see how the market reacts to the employment number and how we close out the markets this week. I will be doing my weekly market wrap video Saturday and the live stocks to watch video on Ticker Tv Sunday morning 8 am Vegas time.
Be safe out there, don't over trade, be patient and let the setups come to you.
Keep an eye on the hot sectors Oil, Financials, Energy, Gold, Steel, Minerals and Bios.
GGB PBR SID VALE CIG a few potential para plays
ETF watchlist
Volatility & SPY OIL Biotech
UVXY XIV VXX TVIX SPXS UWTI DWTI GUSH DRIP IBB LABU LABD
Gold SILVER Dollar Financials
GLD NUGT JNUG DUST JDST GDX GDXJ USLV UUP FAS XLF FAZ
UVXY XIV VXX TVIX SPXS UWTI DWTI GUSH DRIP IBB LABU LABD
Gold SILVER Dollar Financials
GLD NUGT JNUG DUST JDST GDX GDXJ USLV UUP FAS XLF FAZ
Stocks on my radar premarket
WTW heavy insider buying reported after the close
SUNE pr> Scalp only
MGNX insider buy 17.20 small float plenty of cash
GLNG more of a swing type pr daily kinda hot
AKS potential 4 roll off pr
This weeks Watch list and its perfomance >If you took AMC swing it could be a good time to lock it in off the Carmike news
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