The market is likely to close in the red for December, and that's ok. It isn't going too far and this will end up as a shocker of a year in terms of strong performance. It looks like the weak stocks are staying weak, that shorts are pressing their holdings lower and that even some of the big winners are starting to roll over. This is all just short-term stuff - not too surprising after the big run. My 1800 ceiling was pierced marginally (less than 1%), but it is looking solid now. I still think that next year will see more advances, but I expect the road to have lots of twists and turns compared to 2013.
The stocks on the watchlist ( Download Watchlist121313 ) saw 28 close above the 10dma, a big decline. No stocks moved by as much as 10% in either direction this week. 35%+ opportunities over the next year include ANV, BCEI, AEO, PLCM, DAR and AVP (GWPH dropped). Oversold names include EZPW, IRG, and EPL. Moderately oversold names include RMD, TITN, NEM, IRBT, CSCO, DAR, CAG, AVP, ROSE, ANV and AEO. On the prospects, some interesting names that jump out are ULTA (-2.57) as well as moderately oversold FIO, LAYN, GWW, CTRX, SHW, RTIX, WFM an CAS. There are now 16 black 1s, which is a bit troubling and one of the reasons I look for weaker prices in the near-term.
Here are the stocks in the models: Download Positionwatch121313
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