The next several days will be interesting ones. The market has reached the upper extent of its projected range from its most recent breakout. Many stocks have broken to 20 day highs, and the key will be to see which ones hold, and which ones fail over the next several days. The trend (up) does have stronger odds of continuation than reversal, but we are sitting with an overdone closing Trin and a VIX which is near yearly lows, both of these suggest a pullback. The key will be to watch the pullback and from that we will find out what stocks will be our leaders going forward.
One of the most profitable lessons I have ever learned as a trader is that there are times that I should in fact not trade. Right now is a very good example of such a time IMO. The trend is now up, and going short is against that trend, thus over time a losing proposition. The market is currently, however, overbought, and needs to rest. If I was going to trade, on the long side I would look at SONS, GW, IBM,. FCEL and ERTS. On the short side I would watch MSFT, and EMC.
Brandon
teachmetotrade.com |
