I am seeing some light in these 5 areas
The market just experienced a high volume Follow-through Day on Wednesday…
Gary’s Watching:
CAT |
XOM |
PFE |
INTC |
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Are we having fun yet?
With Thursday’s action, I think it important to look underneath the hood.
It’s a start…
Wednesday’s action qualifies as a follow-through day on the fifth day off the recent low.
Here’s what a real upside reversal looks like
Unless we see a monstrous high volume reversal day to the upside, stay clear.
3 things I want to see in this market
The tone and duration of any bounce that will tell me what to do next.
Watch these charts:
DJX |
COMP |
SOX
We may bounce, but this is more important
I think a bounce is in order because
A bounce is possible, but focus on what matters
Despite oversold and extended conditions to the downside, this market cannot find a friend.
A bounce but…
Whether a bounce occurs or not, it is negative that fewer and fewer stocks are working.
Whew!
If you think I have any idea about what happened in the last half hour yesterday, you are being too kind.
Ouch!
Fewer and fewer stocks are carrying the market. Even if the major indices go higher, this type of negative divergence is classic late stage action.
Here’s a quick heads up on oil stocks
I suspect that the momentum crowd may run for the hills.
The best way to trade this rotational market
Nothing has changed in the many areas that I have told you to avoid.