Major stock market indexes moved upward after institutional investors began buying stocks again, encouraged by statements from the Fed on Wednesday – which indicated future interest rate hikes would likely be fewer in number and the total rate increase smaller than previously expected.
Prices of most stocks rose – good for our long positions, but eroding the gains in our older shorts and moving some recent shorts into the negative for the moment. New weekly highs far outnumber new weekly lows as a result. While our trades this week are mostly buys, they are in stocks cycling off of recent lows, not among stocks already near highs.
With major indexes again at record highs it remains unclear just how much follow-through there will be by institutions next week and beyond to continue driving the broad market even higher.
Highlights: 8 new weekly highs in long positions. 7 stocks with double-digit long gains:
AMBR +12% FIVN +47% FRPT +54% LPSN +64% NEFF +97%
OEC +18% TRUE +43%
No new weekly lows among short positions. 1 stock with double-digit short gains:
PIR +27%
Locking in short gain of +21% in FTK (12 weeks).