Rouge
It is not pretty. The Nasdaq has been getting progressively worse since the
open. What looked like a gap-filling opportunity turned out to be just another
short entry. The last print across the tape was 2795.
Now both the banks are at the low of the day and the
semiconductors are rolling over, intraday.Â
On the other side of the market, the strong side, the same group
that I mentioned last week was, the Utilities.Â
My insight for the day is that you need to adjust your strategy
a little for this market. For example, while I usually have a long list of daily
setups that I watch for opportunities, I am presently focusing on more intraday
patterns, primarily short-term reversals and bounces.Â
Lastly, a word on shorts. Do be careful on any short, as many
stocks are quite oversold and many people are looking for a bottom. A rally,
whether just a bull trap, a relief rally, or a bottom, will likely be strong.
Today’s Watchlist:Â
(
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News |
PowerRating)
Checkpoint
(
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PowerRating) is a member of
one of the last groups to show weakness, the software companies. Many of the
names in this group have actually held up very well, relative to the rest of the
tech sector. Unfortunately, the reaper may be coming for them now. Perhaps led
by continued weakness in Oracle (the once, and perhaps still, leader in the
group), Checkpoint has broken the weekly trendline that had been guiding it
higher since the beginning of the year. At this point, we will watch for a move
below the low of last week. Set your alerts accordingly and watch for a short
opportunity in a weak market.
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Until later,