Here Comes The Pullback
Friday I mentioned that “this pullback has been led by the wrong stocks and has been done without a blip in volatility. A news event may take prices higher here, especially as the upward month-end bias in prices is in force. But, short of that news event, a larger pullback would be healthier and more probable before leading to the next leg higher.”
This morning the market is going to get that pullback and likely flush out a lot of weak money. Whether the government shuts down and for how long is yet to be seen but in the meantime this morning’s pullback was in the works and is needed. We’ll look at leveraged ETFs as a way to play this.
Today’s Potential Opportunities on Further Pullbacks:
MKC (McCormick and Company)
Both have ConnorsRSI readings under 5, 2-period RSI readings under 1, extended %b readings, and have dropped 7 days in a row.