The overall stock market remained range-bound until Thursday comments by Trump about upcoming tax relief re-ignited some buying among institutions, resulting in slight gains in the major indexes.

While some of our stocks participated in the late week rally, many did not, in a kind of “stealth” bear market, such that our positions remain a mix of longs and shorts.  The week produced a high number of large price spikes up or down, some of which were favorable (ATW), some of which were unfavorable (FTK) – not clear if these were triggered by surprise earnings or other new information. 

Our review of key behaviors of successful traders continues this week with an emphasis on timely trades:

Act on trade signals promptly – the stocks on our list are there because they are dynamic – very likely to change in price significantly – even within a period of one week.  A trade missed by a week, or even a few days, can result in a large gain being severely compromised, or a gain even turned into a loss, or a loss increased.  The reasons for a missed trade include 1) feeling too busy to act, 2) not wanting to incur the additional brokerage commissions, and 3) not wanting to lock in a loss (“If I hold it for one more week maybe it will rebound”).

Bear in mind trading only takes a few minutes, and may ultimately prove to be the most profitable few minutes spent during your entire week, your employment included.  Trading commissions in the big picture are a minute cost of doing business and should not be a reason for avoiding a trade for which a few cents price will cover.  And most importantly, the only thing worse than a small loss – is a big loss, so make that trade reversal for loss when indicated, as those who do are often well on their way to covering that loss with a gain in the new trade while the unresponsive trader’s loss is only growing – and it only takes a few of these mistakes to gut an investor’s account.

The analytic trading process up through newsletter publication is math-based, unbiased and objective.  The final step is up to you – to place that trade, and this should be followed through in the same unflinching, objective manner, without allowing the influence of emotion, second-guessing or hesitation.  For highest investment returns, stay disciplined and make those trades automatically when indicated.



Highlights:  6 new weekly highs in long positions.  11 stocks with double-digit long gains:

       SLW +15%       ABX +21%         FRPT +32%      CYBE +42%      NEFF +53%                

                                 ERF +22%         KMT +31%       PIR +40%         TROX +51%                                               

                                 HUN +26%                                   

                                 NGL +26%


2 new weekly lows among short positions.  3 stocks with double-digit short gains:

       ATW +15%                                 AGEN +30%

       URBN +17%