The post-election rally has either paused or come to an end altogether, despite good employment figures that should have encouraged investors. With institutional sellers outnumbering buyers, prices of most stocks were driven down, many significantly. This selling may be profit-taking as a result of stocks having soared to reach investors’ price targets much sooner than anticipated and/or anticipated reaction to next week’s assumed Fed interest rate increase. Either way, for passive investors it was a big “give back” week.
Having already moved into many short positions, it was not a “give back” week for us. Most recent shorts set new weekly lows for good gains, offsetting the decline in some long position prices. Some of our longs even continued rising or at least held firm, for additional gains or at least gains-to-date intact. Most trades this weekend are more long-to-short reversals.
Highlights: Only 1 new weekly high in long positions. 5 stocks with double-digit long gains:
ABX +13% IVTY +25% NEFF +44%
FIVN +10%
NGL +16%
Congrats to those of you locking in long gains of +32% in HUN (20 weeks), +29% in KMT (18 weeks) and a very large +74% in TROX (18 weeks).
7 new weekly lows among short positions. 4 stocks with double-digit short gains:
LPSN +10% ATW +29%
NPTN +19% URBN +24%