Chief Investment Strategist
NorAm Asset Management
Since everyone in financial media will be talking this week about the obvious – I’ll be writing all this week about the not obvious. What good is a newsletter that just parrots what you know? Quick recap…
You know… the Nasdaq is in trouble. It’s below the 50-day simple moving average and most stocks that are perceived to over-priced / over-hyped will most likely capitulate to lower prices. You know that any moves higher are like that second helping of desert you seem to have most nights… you know you shouldn’t, but you can’t help yourself…. Well this week – help yourself – don’t go long the Nasdaq – every time it tries to suck you in tell yourself it’s a trap.
What is not obvious? For two week’s I’ve been talking about the rotation into energy stocks and crude oil ETF’s. This hasn’t been obvious unless you look at the relation of sectors and sub-groups. Where’s the institutional money headed? Oil and gas stocks – the oil and gas exploratory group in particular. Three weeks ago this group was ranked 164 out of 197. This week it’s ranked 45th.
There are several stocks in this group that I’ll be watching this week for our clients here at Noram Asset Management. If I see our signal we’ll start taking pilot positions.
What also may not be obvious is the gold trade. If you read me regularly or have listened to me on the radio you know I’ve been bearish on gold down to $1,288. That changed Friday. Gold looks like $1,288 will hold. I’m not entering the trade just yet. I’m waiting – there may be some more volatility to shake out the weak hands.
I talked about specific stocks and gold levels on this week’s Wall Street Shuffle Radio Show if you’d like to listen – http://www.thewallstreetshuffle.com/category/podcasts/
I also created a short video that talks about the energy trade – http://noramassetmanagement.com/wp-content/uploads/2014/04/Wall-Street-Shuffle-Video-Update-4-5-14.mp4
If you have any questions or want help navigating this market from the team here at NorAm please email me – Tim.Reazor@NorAmAsset.com
If you’d like timely updates to key market levels and trade ideas follow me on twitter. My handle is @TJReazor
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