Speculation Is Alive and Well: Opportunities In China Stocks & IPOs

Random Thoughts

The Ps (S&P 500) were flatter than a pancake on Monday. About the only thing interesting that I can say is that they did catch a bid when they began to sell off a bit. I don’t want to read too much into a flat day but it sure does seem that buyers are willing to step up to the plate on dips.

The Quack (Nasdaq) also caught a bid after a bit of a dip. This was enough to put it in the plus column, albeit barely. That’s good enough to keep it at its highest levels since 2000.

The Rusty (IWM) started strong, sold off, but then recouped much of those losses by the end of the day. For the day, it ended down less than ¼%. Ideally, I’d like to see it make all-time highs with vigor. Obviously, that didn’t happen on Monday but there’s always Tuesday.

I hate to read too much into things on a flat day but it sure does seem that things are continuing to shape up.

When you see a stock up over 50% intra-day (see PS below and come to the webinar on Wednesday) you know that speculation is alive and well.

Gold and Silver stocks appear to be resuming their rally off of a bottom. You’re welcome. Other metals such as Copper, which broke out nicely on Monday, appear to be joining in the fray.

Once again, as one would expect, many areas are at or near new highs like the market itself. These include but not limited to Chemicals, Energies, Shipping, Health Services, and the Semis.

There was some internal weakness in some areas that have been shaping up such as the Drugs but for the most part the market continues to improve.

Not all is great in the world though.

The Trannys did appear to have ran out of gas. They stalled short of their prior highs. Weakness in the Major and not so major Airs is the culprit here, selling off out of Pioneer First Thrust type of setups.

So what do we do? With a flat day, the song remains the same: Even though the market hasn’t had much of a correction just yet, I’m beginning to see some setups in more speculative issues such as IPOs and China stocks. These issues can often move independently of the overall market. Ditto for Gold & Silver. Therefore, for now, focus on these type of issues. Hopefully, and I hate to use the word hope in this business, the overall market will accelerate higher, have an orderly correction, and then rinse & repeat.

Best of luck with your trading today!

Dave

P.S. There’s been a stealthy bull market for quite some time. IPOs have been on fire since last fall. AGRX for example (full disclosure, I am long AGRX), was up over 50% during the day yesterday alone. This bull markets is what inspired me to do a webinar on why and how to trade IPOs.

Come to the “teaser” webinar Wednesday night (06/25/14) at 7:00 Eastern. I’ll show you why I think this IPO bull market is not yet over. And, even if/when it does end, there will still likely be opportunities. I’ll touch upon why IPOs make great vehicles to trade. I’ll also show you how to avoid the majority of those issues that are doomed from the beginning.