ManyPeaks.com

Although trading was much quieter than Thursday’s frenetic pace, the S&P 500 and Nasdaq Composite each hit 52-week highs today.

Transports, Tech, & Financials were leaders to the upside. Gold stocks took a breather from their recent spike, and the Oils were mostly stagnant.

While there are likely better opportunities in other sectors, I should note that I’ve changed my tune from last week on Energy stocks.. many of the better ones are starting to find buyers after a 6 week drubbing and are probably better buys than sells here. I’ve been reading how badly many hedge funds did in October — some down as much as 10% for the month — and surmise that lots of them got whacked in these Energy stocks.

The numerous high-volume down days during the last month suggest that many funds “took their medicine” during this stretch.. which should alleviate selling pressure for the next month or two in these stocks. I’m looking at buying DVN and UPL specifically, but am waiting to see signs of renewed strength in the charts.

Being just over 50% invested long, we had our best week since the 3rd Quarter. I am really looking forward to next week’s first 3 days of holiday trading.. but will probably be trimming positions by week’s end. The typical scenario is a rally into Thanksgiving, then a selloff the following week as worries about weak (early) Christmas retail sales give traders something to fret about.

I’ll be working more on my TradeStation software, and also posting some non-Trading content over the weekend. (Of course) I think you’ll be entertained.