Editor's Note

The next two weeks are known as the small cap earnings weeks. The big caps dominate the first four weeks of the cycle and the small caps report the last two weeks of February. The combination of impending earnings or recent earnings spikes/drops have made just about every small cap stock ineligible for play consideration.

I went through my universe of about 350 small cap stocks today and I could not find anything that looked promising that did not have earnings over the next two weeks.

I almost pulled the trigger on Arconic (the old Alcoa) but the string of gains is too perfect. The instant I add that stock will be the day the profit taking starts. I have been watching it every day since their earnings on the first and there have not been any entry points.

With the market suggesting there are more highs ahead, I am hesitant to add any shorts until the market looks fragile again. The S&P futures are up +3 tonight and hopefully we will have another good day on Friday.

I will look at all the charts again this weekend when I have more time and see what gem is hiding on all the market noise. I do not want to recommend a new play just because it is a newsletter day. We only want to enter a new play if it looks promising.


No New Bullish Plays


No New Bearish Plays