StockTwits 50, June 25
- Posted by Ivanhoff
- on June 23rd, 2012
Wild, wild week. It started with fireworks and major moves to new all-time highs and it finished weak with a lot of failed breakouts. The summer choppiness continues with full force. This is exactly the type of market environment that conditions all of us to be super nimble and take profits quickly.
Headlines risk is not only about Europe and China anymore. The economic data from the U.S. is also deteriorating and it seems that the market is starting to care. Crude oil continues its free fall and it is already down 20% for the year. This is a major tax break for the consumer and a good explanation of the relative strength in many retail, airlines, and trucking stocks. Money always goes somewhere. One company’s declining revenues is another company’s improving margins.
For the week, the St50 momentum index appreciated 0.4% – an overall performance that could only be described as bipolar as eleven St50 stocks gained more than 4% and exactly as many declined 4% or more. Yes, the gigantic drop on Thursday brought reminiscences of higher correlation times, but if one steps back – it is clear that we are living in a market of stocks environment.
There was nothing bullish about the price action on Thursday. Nothing. It was just one day, but it still managed to change market sentiment, for the worse. I continue to follow the 52week high list closely and it mostly consists of biotech stocks – something that doesn’t really inspire confidence. Market benchmarks ($SPY and $QQQ) are still below their declining 50-day moving averages and until they retake last week’s highs, rallies should be considered guilty until proven otherwise. In the meantime, there will be breakouts in individual stocks, but one needs to be more selective and stay nimble.
Best St50 performers for the week came from the biotech sector again – $PCYC and $QCOR. This should not be a surprise with the biotech index itself ($IBB) being at all-time highs. $PCYC gained another 16% and it is already up almost 90% since it joined the St50 list three and a half months ago. Make no mistake, this is a typical example of parabolic move and they don’t end well, unless there is an acquisition of course. $QCOR closed a third positive week in a row.
Five St50 stocks broke out, failed, and then bounced from their rising 20dmas – $SXCI $MLNX $ALGN $CERN $ALXN. They were all ready to go, but the general market weakness in the middle of the week had a gravitational effect on them.
Speaking of mobile payments plays, Visa ($V) closed near all-time highs and it is back on the list.
Social media stocks came back with a roar and $LNKD is already comfortably above its rising 50dma.
$DDD holds strong near all-time highs, after doubling YTD and gaining 500% for the past 2 years.
You can easily follow any or all of the stocks in the ST50 on StockTwits by clicking here.
Have A Great Weekend!
~ Ivan Hoff (@ivanhoff)
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus