The nasdaq barely gave back 1/2 of its gains from yesterday, however, the Dow gave back all its gains and then some to break through support. Volume rose across the board, marking small distribution days. This marked the third distribution day for the Nasdaq in the past 4 weeks, and second for the SP 600 since June 7
It is normal in uptrending markets to see distribution days. It is what happens afterwards that is important. No matter what happens, have a game plan to cut losses and only buy the best stocks in strong sectors.
There was some crazy action today as the indexes made intraday lows, then intraday highs, and then reversing again to land near the lows. This action normally is a precursor to a move down, after an uptrend.
I sold down some longs today that showed big profits past couple of days and have been cutting some longs that reversed today. I was able to raise my cash level and am looking for some weakness in the very short term.
Earnings season is coming up and a lot of charts with those big uptrends might have already priced in good earnings. So if a company doesnt beat its numbers, I am sure it will get punished.
New Swing Longs: EPAY RBAK GERN EML
Stocks Looking Good Still: ENG ABP TRGL
New Swing Shorts: BC PDCO ZOLL ADEX HMC DLP IHP RI BWLD
Remember when shorting, to short as close to the moving averages or support levels as possible and never let a short go against you more than 5%. I set alerts on my IB platform to alert me to the best risk/reward level.
Aloha
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