Monthly Charts…The Chase is On!

  • Posted by
  • on November 28th, 2010

Take a look at the monthly charts of:

$BIDU
$NFLX
$PCLN
$CMG
$FFIV
$CRM
$AAPL (long)
$AMZN (long)

I have been long all but $BIDU at some point in their massive monthly runs. The Stockstwits stream is a ‘pulse’ so the pulse is ticking bullish at the moment. It will tick bearish deep into a bear market as well. It is the new ‘tape’, a tape with context and a human element. It makes sense that the tape will not pick up that many bears because of the up move. What’s very smart about our tape is the way they have kept the bullish talk away from the financials which for the most part have been the noise. Our tape has zeroed in on the monthly juggernauts. We added the Stocktwits50 to help investors and traders uncover – from an internal algorithm – ‘the 50 best stocks with the 50 best setups’ and new names are starting to littler the list. Semiconductors, energy, materials and machinery are littering the list so maybe the rotation of money will work magic.

We have $Macro Sunday led by Gregor Macdonald which delves into the guts of Macro issues and we have the Forex traders join in every evening to place their trades in a market that’s been all over the place, but the theme of the year has been the new tech leaders. I will share the numbers this week.

Fred Wilson just wrote again about chasing in the venture market:

I’ve been visited recently by a number of foreign investment vehicles, many of whom are investing billions of dollars of sovereign wealth. They all want to get into our funds and our deals. When I talk to them about why, they can’t really articulate a cogent argument about the economic potential of the social web. But they see the returns and want some of them too. That scares me.

In Andy Kesslers’ great book ‘Running Money’ he wrote about being hit up with $500 million after his humongous hedge fund gains in 1999. He decided to not only disregard the fantastic offer, but sell all his positions and return capital. Talk about ballsy and being right! (Must Read Book for anyone in the financial business).

The bulls are riding the FED and some great price action. Technology companies have huge market caps and great balance sheets which seem invincible. I am long, but have now been sounding caution for three weeks and picking companies with much tighter weekly and monthly bases. Time will tell what happens, but I have never seen monthly extended runs like those of the companies above end without some serious heartbreak along the way.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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