Bigger Picture

This has been an incredible year in so many ways. Not always favorably, but not all bad either. In the end, our thankfulness still outweighs our regrets…

Perhaps that sounds more like a year-end reflection than Christmas wishes. Good. This is the best holiday to kick-off what is the best week for just that effort. What better frame of reference to begin the last week of the year than with familial faces and few distractions…

Except for the occasional distraction, I think that well describes this awesome group of subscribers to Stock Technical Trader. More thankful than regretting, and helping each other like family. Best wishes!

My comments on the following stocks can be found in the Activity Feed”s post below this one. Be sure to review the content and to get any needed clarification for any of these positions you”re exposed to or considering…
GPRO, INSY, MCIG, TRTC, OAS, USO, GWPH, DRYS, SALT, NLNK, FITX

Also, careful trying to force a trade today as tomorrow”s shortened session and falling volume is approaching.

I had intended to spend more time addressing the comments from today”s January Effect update, regarding the relationship between tax loss laggards and an intact rally. OCN”s crash stole the spotlight. But that discussion was followed by a review of most other January Effect candidates, and then also of the marijuana sector.

This morning”s Livestock starts at 10:45am ET, and ends by 11:30. Login info: (iPads and Tablets use the accompanying teleconference info to get audio.)
https://roddavid10.mitel-nhwc.com/join/pcxsrhm

optional teleconference instructions (required for iPad and tablets):
1-605-562-0020
Meeting ID 976-912-682 #
Other requirements can be found here:
http://marketfy.com/product/stock-technical-trade-alerts/blog/1143/view/60141/

AERO, ARNA, ATTBF, BTU, CALL, CARA CBIS, CDE, CLF, GBLX, GSK, NCT, OCN, PBR, RIG, SODA, WLT

Dec 15 January Effect update linked here.
Dec 8 January Effect update linked here.
Dec 1 January Effect update linked here.
Nov 17 January Effect candidates introduction linked here.
Oct 9 January Effect webinar linked here.

Join me in Monday morning”s Livestock to review each of the following issues in detail.

The best laid plans…
             — John Steinbeck

January Effect candidates are, by definition, laggards. Underperformers. Dogs. It is necessary that exactly what qualifies them as being vulnerable to reversing up, is their ongoing selling pressure. Broader market rallies are produced by leaders, making laggards even less attractive — and encouraging their sale even more so.

Their vulnerability to reversing up increases as more and more sellers are motivated simply by the seemingly relentlessness of the direction. The bird in the hand becomes more valuable when it is about to fly away. That last element refers to tax loss selling pressures. Midnight on December 31 isn”t the specific time when those pressures suddenly abate. But many valid January Effect candidates should be passing their point of equilibrium by now.

Energy sector components have it both ways. When Crude stops falling, tax loss sellers may finally be discouraged. Precious Metals are experiencing much the same forces. Marijuana stocks will be very revealing when the new year”s trading begins on January 2.

Meanwhile, they”re all still underperforming laggard dogs. They haven”t caught a break, but they”re increasingly vulnerable to that January 2 lit match, which — this being Christmas week — is starting to spark.