Since tomorrow is a Friday before a holiday weekend, and in addition, one that follows a sell-off like we had today, I doubt that the usual rules will apply as well and thus I don't plan to provide any trade ideas for tomorrow.
I'm not totally surprised at the negative action of the past couple of days; I also doubt that it will be a repeat of late February: there is too much positive momentum to turn around that fast and go down that far. I'm not saying we saw the bottom today (though we may have), however, I am saying that I doubt that we'll see that kind of panic in the short run. Markets that go straight up do have to have some down days, and when they come it seems like the fun is over. Maybe it is, but my money is on looking for a tradable bottom as long as it occurs within the greater uptrend. I'll be watching the reaction to the existing home sales data tomorrow morning - whether good or bad - and developing my trading plan from there. I'll be focused on the broad indexes and related options only unless I happen to find an excellent single stock setup in the next 30 minutes.
Also, I won't be trading Tuesday due to a personal commitment, so I probably won't post trade ideas until late my time on Tuesday for Wednesday trading.
Until then, good luck.
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2 comments:
Hey John,
I read your posts quite often. I am curious to find out the process you use to generate your trade ideas and the entries/exits.
Sam
I do several things: keep a master list of stocks with constructive patterns, use a scanner to find trending stocks, and review the big movers (on most days) to identify stocks that may interest me.
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