It’s time to build a list of short sale candidates
The market put in a
reversal yesterday. The S&P and Dow turned red to green, but the
Nasdaq finished slightly negative. If you went long trying to make some money
from the bounce either Tuesday or yesterday morning — congrats — trail your
position and don’t overstay your welcome.
The market is now in bounce mode. How much longer this will last is anyone’s
guess. Another day or two would be nice. The play at this point is to start
building a list of potential shorts in anticipation of another leg down. Once
the bounce looks to be reversing, pounce. Should the market fall below today’s
lows, that could lead to some sharp selloffs.
On Monday I listed a few reasons why I think this market is drowning. I didn’t
mention the action of recent breakouts. Here are a few of those:
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AMTD |
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GLW |
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PAY |
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AMD |
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GGXY |
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Haven’t seen enough? Check out
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MLEA |
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FAL |
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HOMS |
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WIBC |
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Best of luck with your trading,
Rob
For those who may be looking to expand their
knowledge beyond just market timing, my
Hanna ETF Money Flow System utilizes the VIX in generating trading
signals for spread trades.
Rob Hanna is the principal of a money
management firm located in Massachusetts. He has spent the last several years
developing and refining methods for trading in stocks across multiple time
frames. He selects stocks using both fundamental and technical criteria, and
then trades them using technical analysis techniques.