Bigger is better right now. Investors are finding comfort in big names, value names, names forgotten in the past year's rush for everything shiny and new. In other words, we continue trouncing the momentum names that benefitted from a lack of concern about risk management or valuation. We won't know for a few weeks how many traders have been wiped out from the sharp end of the recent winners, but I do know sharing profit snapshots on Twitter (TWTR) is at a 52-week low.
If you want to play the hot names of the past nine months, you'll likely need a buy-and-hold mentality. I mentioned the idea of legging in earlier this week, and I believe that still holds. If we bounce and you only have half a position or even a quarter of a targeted position, there's no true harm. If you're up, you're up. In the current environment that's a win.
It's a sit on my hands day in terms of trading. I've nibbled on some smaller names I want to hold long-term, but in terms of buying something I think I can flip in the next few weeks, there isn't a lot I love.
Comcast (CMCSA) has a pretty good look on the daily and weekly chart. If shares can close above $53 tomorrow, we'll keep the uptrend in place that began in November. Above $54 and bulls have a breakout from a small ascending triangle to consider. Momentum and trend are still strong, yet neither is overbought, so upside shouldn't run into issues in that regard. The company trades at a discount to peers. With Dreamworks and Universal theme parks, there is an obvious reopening theme to play here as well.
Again, I'm in no hurry to buy anything yet for a trade. I'd rather focus on some longer-term names that are getting sold off hard and add things that will cause me a little less stress right now.