Business as Usual

Although the amount of swing trades we make during a market correction is often significantly decreased, we still must go about our business in terms of identifying the best actors during the indecisive market periods so that we can be armed with a basket of fresh winners going forward, especially when the market actually does improve. 

In recent weeks we did highlighted some natural gas-related stocks as clearly outperforming energy in general, and played that thesis with Members. However, we also surmised that strength was more of a special case regarding a natural gas rally as opposed to new market leadership. So, we sold a name like RRC into strength and are now observing whether those stocks can set back up alongside natty itself. 

But as far as tech, healthcare, and consumer names, even a name like TSLA, we must keep an open mind to new leaders.

In addition, while not big enough to lead the market, we want to note which smaller cap names are defying the correction and setting up to explode higher down the road. Glaukos, a name one of our Members recently flagged, is an excellent example of a smaller cap medical device play which has used this autumn as a means of tightening up its attractive daily chart (below), and is now threatening an upside channel breakout as we speak. The $2.5 billion market cap firm offers the revolutionary iStent surgery for those suffering from glaucoma.

GKOS is just one example of names to keep adding to our list of standouts during what has been a choppy couple of weeks after a downdraft last month. 

Off the NVDA swoon this morning, bulls are trying to mount a comeback but it is too early to declare the weakness in equities as a whole being bought. Nonetheless, we go on with business as usual to prepare for any type of holiday rally between now and year-end.