It seems to me that we have hit a point of time where either you buy/short bounces for a daytrade and keep very tight stops (like 3/8), or you buy for a longer term with an 8% stop. Where the 2% stop on a short-term trade is mostly likely to be hit, and not worth the risk.
Again, the volatility index climbed over 35 which indicates a very oversold market with potential bounce. Neither the internals nor the screened stock ratio give any signal that the risk to the short-term long position has reduced. The screened stock ratio is at 12 to 3 favoring selling. Like today, we may continue to get good tech bounces from being oversold and as short sellers cover, but the risk is still high so "Lite" mode is still the safest positioning.
The stock screening provide many of the same stocks as yesterday, which did provide some opportunity, but the risk remains high.
Longs: AVT, ESCM, FAST, GILD, GLC, MAT, SIAL, STE, SFD and TTEK.
Good Trading!!
Sam
savvy-trader.com |
