Some periods of the year can produce spectacular profits for traders like us when institutional trading behavior follows a consensus leading to major swings in stock prices. Last week was certainly not one of those. Instead, some recently rising stocks continued upward, others suddenly fell, some recently falling stocks continued downward, others suddenly rose – a sign there is no current consensus among institutional investors.
With no significant global events, earnings or economic reports to drive trading, institutions often turn to Washington for guidance and last week was full of uncertainty – the GOP healthcare alternative bill proved as unpopular among investors as the already business-crippling Obamacare Act it was intended to replace. Interesting that the stock market rallied late Friday on news it would not even be voted on.
Our stocks were the same mix of ups and downs, for another not particularly productive week, aside from a few highlights. Decliners outnumbered risers, in yet another switch from the week before. Many recent positions just unable to make any significant headway at the moment.
As mentioned last week, this current period requires our patience until institutional investors trade with consensus conviction (either direction) to really move prices of many of our stocks for significant gains.
Highlights: only 3 new weekly highs in long positions. 6 stocks with double-digit long gains:
EVH +10% ABX +20% NEFF +67%
TRUE +11% FIVN +25%
IVTY +27%
Locking in long gain of +16% in NGL (18 weeks).
6 new weekly lows among short positions. 4 stocks with double-digit short gains:
ERF +14% ATW +29% URBN +31%
NPTN +17%