The week is almost over and my fuel-cell stocks are still trading at levels too high for their valuations. That itself is not uncommon, but what is uncommon is the group is still rising in the face of PLUG’s earnings that did not meet expectations and the short crowd firing at them with all barrels. Although PLUG and BLDP are nowhere near their highs of just a few days ago, they are still quite lofty. FCEL is weakening, falling back from the pack. My poker name is “willing-to-wait,” and so I am. I will pick off the opportunities as they present themselves.
- As we approach the end of the first quarter, the S&P 500 seems a bit jittery after putting in a new high on March 7.
No, I don’t agree the market is jittery. It is simply waiting for a catalyst, some consistently good economic data that will propel it forward. It is doing what the market does – rebalancing. The market is always rebalancing. Right now, even though it believes the future is good, it still needs some verification of that. A rebound in retail sales and dropping unemployment claims are not quite enough to give it lift.
- U.S. retail sales rebounded in February and new applications for unemployment benefits hit a fresh three-month low last week.
Both are good signs for the market, and the fact that the market is dropping today suggests the market will need more consistent positive data to make any great moves. In the meantime, the market will find its floor, especially if consumers remain on the positive side of the equation.
- Consumer confidence rose last week to the second-highest level since August as Americans grew more upbeat about the economy and buying climate.
Trading is a job; I have said this many times. Like any job, it requires time to learn the skills necessary to master the work. It does pay off. After years of watching the market, one learns an important lesson – the market lacks mystery. Occasionally, it throws a wicked curve, but, mostly, it is fastballs coming right at you. The trick is to learn this lesson and then apply a strategy that fits your life, your style, and your bank. You must work, though; that is key.
- Hard work, preparation, discipline, and consistency are crucial if you want to be successful in your trading. If you want to get lucky, you are better off chasing leprechauns.
The first sentence above is quite true, but the second leaves me pondering. What if your hard work, discipline, and consistency lead you to getting lucky? I am reminded of Jack Nicklaus, the most successful professional golfer ever, when he responded to a question from a reporter that suggested he was lucky after he won his 19th major tournament. “It’s a funny thing. The more I practice, the luckier I get.”
Keep on working hard and you just might catch a leprechaun now and then.
Trade in the day; Invest in your life …
