Institutional trading behavior continued its whip-saw pattern

Past week recap:  Institutional trading behavior continued its whip-saw pattern, as investors responded to news events – mostly from Washington – in a seemingly constant knee-jerk manner.  Last week’s concerns over trade wars with the Chinese suddenly subsided over just a few remarks from various government officials, and buying resumed – albeit volumes were low.

 

Still remains a very choppy market with many stocks unable to post intact trends of more than 3 weeks duration.  Great uncertainty and lack of consensus among institutions as to how to react is keeping market conditions challenging for all investors, including us.  Broad market short-term price trend is upward, but larger trend remains negative.

 

Many of our stocks remain stuck, whipsawing within a narrow price range, much like the major indexes.  New weekly highs/lows, and number of large gainers remain limited in these conditions.  At least some long positions rallied last week, including recent ones.

 

Highlights:  7 new weekly highs in long positions.  8 stocks with double-digit long gains:

  • FMSA +10%
  • CRC +26%
  • FTK +35%
  • URBN +80%
  • BXC +279%
  • PES +18%
  • EVTC +27%
  • PLSE +12%

1 new weekly low among short positions.  No stocks with double-digit short gains at this time.

 

Stock list changes:  Substitutions continue, as formerly productive stocks which have stalled from choppiness in this market are replaced by better-performing alternatives.  Deleting AKTS and SNE after routine scheduled evaluation.  Adding the following stocks with recent compound trading returns listed and trades indicated:

  • China-based Aluminum Corp of China (ACH) [metals mining], +130.4% in past 23 months
  • Calithera Biosciences Inc (CALA) [biotech/med research], +219.5% in past 18 months
  • MDC Partners Inc (MDCA) [media & publishing], +238.9% in past 24 months
  • XOMA Corp (XOMA) [biotech/med research], +789.2% in past 15 months

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