Fwiw, this is what I wrote to our subscribers (Swing Trade) this morning:
Good morning traders! Apologies for the delay this morning. We have given the markets a thorough analysis of internal markers and have some data to share with you.
The strong selloff yesterday had several causes: GM huge write-down, Fedspeak about 2% GDP, and continuing meltdown in the financial, tech and smallcap sectors. Without strong reversals in those three groups it doesn't matter what energy and commodities do, we be goin' down. We remain bearish for the near-term on this market, as stated last week, but there are some hopeful signs this correction will be short-lived...and in fact, that we may be near an end. Bullish percent figures for the Nasdaq is at a number that is near where the market rallied sharply this year: the March bottom (BP-55) triggered a 19% run, and the August bottom (BP-50) triggered a 22% ramp. We currently sit at BP-53. Moreover, the magic trigger for Advanced/Decline Volume is -2000. We always ramp from that low. The ADV number currently sits at -1900. And NewHighs/NewLows is also reaching an historical pivot point. But, there is still room to the downside according to the Summation Index, one of my favorites. So I suspect we will see a real battle between bears and bulls waged over the next few trading sessions as we head into op-ex next week. Thank goodness we've got a QID hedge on and are sitting on a lot of cash! In this market, CASH IS KING! The bull market will resume, and there is a very good chance we will be at new highs before the year is out. But for right now we may have to endure a bit more pain.
Some positive notes: TSL is now trading at 65.50 in premarket on FSLR strength.
NOTE 1: did anyone get shares of CMED yesterday? 800 shares traded at 42.50 but none of mine. I'm hoping to pick up a full position today...the chart looks good.
NOTE 2: I've updated our Special Opportunities List below with 2 new picks and some new entry prices. I like CSCO anywhere near 30...its report last night was pretty darned good.
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We have 1 new BTTT Swing Trade(s) for you to consider for today's market. |
