Rub-a-drub

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The shit storm of sellers hasn’t quite passed as Wednesday’s distribution day now makes no. 3 in about a week’s worth of trading.

All of the major indexes and key sectors of retail, semiconductors and broker dealers are testing below their 50-day moving averages. How they bounce, hold or fold here means everything, and will tell us if we need to downshift our bias to Seller’s Edge.

Expect more volatility. The VIX says OEX traders are nervous. They might even get more nervous if we see more of a breakdown from key individual leadership names.

Let’s see how January plays out. Year after year whatever happens this month sets the tone for the year.

Aggressive money has already gone short.

 

Derretir Hasta!

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Derretir Hasta! Spanish for melt up. It’s our way of saying again what we suggested last week.

The tech heavy Nasdaq is leading the charge north, as the S&P and Dow follow closely toward new high territory. But you know that.

Solid, upside participation from the leading tech stocks in the market, aka our Leadership, makes it really difficult to want to step up and place bets short for the a correction at this time. All the shorts really have, in our opinion, is the fact that the market will eventually revert to its averages, as it always does.

You can’t put a time on when corrections will happen. Well, maybe a Fibonacci analyst or astrologer would. But that’s not the focus here.

For now, up is the path of least resistance, as far as Growth Stock land is considered.

Heigh Ho

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No one is surprised to see a fat, red distribution day to greet the weak.

Goldman has come out to the media as a bear. No telling how long they’ve been actual bears.

But interest rates are still low. The economy is looking strong. Traditionally bearish economists are now bullish.

But selling just feels right. We’ve gone without a real correction for months. Unusual.

Let’s wait. Watch for signs of the still resilient leadership to crumble here.

Keeping It Simple

First screen of the year, Top Growth Stocks listed by EPS ranking, all possessing RS values of at least 80. More on the pattern(s) here soon…

Symbol Company Name
ACT Actavis plc
BITA Bitauto Hldgs Ltd Ads
FB Facebook Inc Cl A
FONR Fonar Corp
MEOH Methanex Corp
NUS Nu Skin Enterprise Cl A
NYLD NRG Yield Inc Cl A
QIHU Qihoo 360 Technology Ads
SFUN Soufun Hldgs Ltd Ads A
WLK Westlake Chemical Corp
ANIK Anika Therapeutics Inc
BWLD Buffalo Wild Wings Inc
LVS Las Vegas Sands Corp
RGR Sturm Ruger & Co Inc
THRM Gentherm Inc
DAL Delta Air Lines Inc
ENV Envestnet Inc
FNGN Financial Engines Inc
MDSO Medidata Solutions Inc
SAVE Spirit Airlines Inc
FNSR Finisar Corporation
KS Kapstone Paper&Packaging
PRU Prudential Financial Inc
KFY Korn Ferry International
PKG Packaging Cp Of America
ALGN Align Technology Inc
SGY Stone Energy Corp
SYNA Synaptics Inc
IACI I A C/Interactivecorp
MHK Mohawk Industries Inc
ACET Aceto Corp
AEIS Advanced Energy Inds
ARRS Arris Group Inc
APAM Artisan Ptns Asset Mgmt
ACIW A C I Worldwide Inc
BABY Natus Medical Inc
CW Curtiss-Wright Corp
BR Broadridge Finl Sltns
ATK Alliant Techsystems Inc
CONN Conns Inc
CRZO Carrizo Oil & Gas Inc
LAZ Lazard Ltd Cl A
AER Aercap Holdings Nv
MAN Manpowergroup
PFG Principal Finl Group Inc
TRN Trinity Industries Inc
APO Apollo Global Management
VIPS Vipshop Holdings Ltd Ads
WST West Pharmaceutical Svcs
XEC Cimarex Energy Co
BBY Best Buy Co Inc
ETE Energy Transfer Eqty Lp
AEL Amer Equity Invstmt Life
WWW Wolverine World Wide Inc
MEI Methode Electronics Inc
VPHM Viropharma Inc
YY YY Inc Ads