FWIW, wrote this to our subscribers this morning...note comments about the shipping sector (it's "hotting up" here):
BTTT Swing Trade Newsletter
Dr Stoxx's Market Notes...
• Good morning traders! We have the perfect bullish storm brewing now: positive seasonality (December is the most bullish month due to Christmas/holidays) + FOMC likely to lower rates + January effect (buying back of losers, gets earlier every year due to expectations) + an election year cycle (always bullish because of promises made to fix economy). The only red flag I'm seeing here is some stealth weakness in big cap tech (NDX index). We had a rollover in the Bullish Percents in the NDX yesterday which is not a good sign. And the S&P is looking a tad bit overbought here. But a bit of chop chop is to be expected until we get a clear reading on the Fed. There was strong accumulation in the Midcap sector yesterday which is bullish going forward. This morning we get the highly expected jobs report which is supposed to come in pretty weak. The numbers should be exceeded, in which case we should rally. Anything at or below the expectations (77k) and we should fall off today...presenting a great buying opportunity.
• Ok, let me brag a bit here (forgive me, Lord, for my pride): we got you in at the bottom of a huge China pullback; we got you in at the bottom of a huge pullback in the alt/eng sector. Now I'm suggesting you can get in on the bottom of a pullback in the dry bulk shipping sector, one of the hottest sectors on the street right now. Last month I made 2 plays in our Fund in DRYS (75 to 94 in 4 days!) and EXM (41 to 56 in 10 days!) which together helped me patch up a bad month. Now both charts are set up again to rally. I especially like EXM (see chart below). This is not an official trade since we are full up, but if you have some cash you might consider a small position in either or both stocks (I currently own both from yesterday's close).
• Stocks on our BUY LIST: BUCY, BW, YGE, DRYS, EXM Stocks on our SELL SHORT LIST: none
• Pre-order Dr. Stoxx's new book, "Trend Trading for a Living": CLICK HERE!
• We have ... new BTTT Swing Trade(s) for you to consider for today's market.
"Trade for a Living, Trade for Life" (motto of Befriendthetrend.com)
