We had a decent week with a limited number of trades this week as we move into what I think should be a big week for us. The market has increased at some pretty alarming rates over the past couple weeks, and I think we may be setting things up as a bit toppy. Next week, we have a slow week in economic data, earnings reports, and the technicals are showing a majority of stocks and ETFs as overvalued. My early prediction is that we will be looking at some inverse ETFs for Buy Picks and a lot of great short sales.
For this week, we had some positive picks with Ultra Proshares Financials (UYG) and Direxion Daily Real Estate ETF (DRN). We ran into some issues, though, with our Overnight Trade of Solarfun Power Holdings (SOLF) and a Short Sale on Dillard’s (DDS). We were able to relay the market’s upward trend into some positives by picking ETFs that were volatile and move with an upward trending market. On the other hand, the solar sector and short sales gave us a headache. Let’s recap:
Winners:
Direxion Daily Real Estate ETF (DRN): On Monday, we relayed this Buy Pick of the Day into a 3% gainer. We got involved at 138.60 and sold at 142.49. We liked DRN because of some great news coming out of Greece that it was stable, some great personal spending numbers that were up much larger than expectations, and the world markets continuing to trend upwards. It all turned into a slow move up for the market, which DRN followed.
Ultra Proshares Financials (UYG): Friday was an up and down day for us. The good side of the day came from a solid 2% move upwards for out UYG daytrade. Things looked to continue upwards on Friday with the GDP report and some good earnings. We liked UYG to move a bit under the radar and follow the market up, and I was right.
Losers:
Dillards (DDS): The major move upwards on Monday made our Short Sale of the Day on Dillards a mistake. The earnings on DDS were pretty exceptional, but I did not think they were good enough to make the stock move up what would be 15% in one day. The stock was up near 10% in pre-market, and it appeared to be a solid short. The market momentum and retail momentum were too great. We lost 3%.
Solarfun Power (SOLF): Solar was not bright for…
