Yesterday Amazon and Google crushed earnings. Just look at the price chart and see the weekly or for that matter the monthly.
Priceline hit $1858 a share on a slow and steady run up. But, I hate chasing new highs, so I'd rather wait for the short.
This morning I woke up and took and read Third Point and Dan Loebs quarterly investor letter. He's a smart guy so I was curious to what he had to say. The first part of the letter he notes the lack of volatility. We need this as traders. I can remember trading in 2011-2013, the volatility was insane and stock picking was a little easier.
What this market feels like to me is small, short-burst trades, the continuation moves are seriously lacking. Don't take this post as a complainer post (it's not), more of a general check up of what we're seeing right now. As a trend trader I try to find the turns at the tops and catch the turns at bottoms, sometimes it works, sometimes it takes a few tries to catch. What this market seems to be calling for is more short-term futures trading, for me WTI Crude oil and Gold futures have been the go to (E-MINI S&P has been a chop fest).
So I ask the question that this blog is supposed to be about, does finding a 'top' anymore even matter? I doubt it. The truth is, and I'm the first to admit this, many of us will never fully ride the wave of a trade to it's fullest potential, and that's alright. I think what matters is catching small trades, grinding it out, and piecing together a decent profit over the quarter, not worrying about where tops or bottoms are. Because, really, there are no trophies for 'I told you so's' or trade calls, what matters is execution and profits.
I'm off to get ready for our Investors Summit here in Scottsdale. We've got students coming in from New York, Vancouver, San Francisco and San Diego. It should be a great weekend with the community and hopefully I'll come back with some fresh new ideas for a blog post after it's over.
Trade well, stay patient and ride the trends.