Trader Mike

Earlier today Briefing.com posted their thoughts on how these “momentum themes” (mini-bubbles) develop year after year:

We mentioned numerous times over the past 48 hours the Micro-cap Energy momentum theme that has sent some previously unknown energy names skyrocketing, and all you have to do is check the percentage gainers list today to see that — for this morning at least – it’s still in effect (the top percentage gainers today in order are all micro-cap energy: SSN +75%, FPP +41%, BDCO +38%, MXC +29%, PDO +21%, LEI +17%… see 11:14). Rather than recap the specific circumstances that drove these names, we’d like to discuss in general terms how these momentum “themes” develop. It seems that maybe once or twice a year these mini-bubbles suddenly pop up …

Just passing on yesterday’s Worden Report from Don Worden, one of the founders of TC2000.

The Worden Report (Tuesday, June 15, 2004)

Trends and How They Act

We remain in a Minor Uptrend. We, of course, have been in an Intermediate Downtrend for most of the year and a Primary Uptrend dating back to October of 2003.

There are two ways of gauging the correctionary efficacy of a trend - by its duration and by its magnitude. This Intermediate Downtrend has lasted longer than most, but it has not been especially deep. That is, there is more room on the downside within the Primary Uptrend if the market so wishes to use it.