If you listen to the TV, read the paper, or visit chat rooms, you will notice the high level of negativity out there. If you look at the individual charts of the leaders in the market, however, you get a different story. Almost all of my longs acted well today, like the market didnt even go down, and plenty of new charts came up on my scan today for new swing-long positions. So who is right? I am not sure. So lets look at what we have now...
The indexes did what I mentioned they might do yesterday (bounce off key moving averages), with the Nasdaq bouncing down off 50/200 dma, Dow bouncing off the 200 dma, and the NYSE and SP500 bouncing off the 50 dma and they did it with a small increases in volume. Is it time to panic? No. A pullback or a consolidation is something we needed after seven straight up days. With all the nice charts I see on my scans that look good, the high level of pessimism, and all the focus on negative news in the media I feel comfortable that we will hold the lows set in April.
However, anything can happen. Always be receptive to market changes. It can happen at any time.
Update::::::::The more I look at the volume on the index charts the less I feel as confident as I was right after the market closes. One of the things I love about trading is that after doing something else fun and coming back to your work/hobby/love and reviewing the charts again, it is possible to interpret it differently. I still am bullish on my medicals and tech stocks still but I have to respect how well those index did in fact fail at the key moving averages. When the August low happened they pierced right thru the moving averages.:::::::Update.
Long swing-trades: FARO GHL GAJ IDIX CNMD CRYP ENG TXCC FORM BAP APT SYKE
and lets add one short I like from the 50 dma breakdown that was loved by daytraders: GRU
Aloha. No surf today :(
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