Oversold Stocks and Thin Holiday Trading
Today will trade thinly because of the holiday, and this increases the possibility of a large move in either direction. Historically the day after Thanksgiving has had an upward bias. But with every day now being driven by the news from Europe, it will really come down to whether anything positive comes from there. Good news could lead to an exaggerated move to the upside but anyone predicting direction on a day like today is simply guessing.
Overall the market is extremely oversold and due for a healthy bounce higher. Again though, this is predicated on positive news coming from oversees.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan, click here for more information.
Larry Connors is founder of TradingMarkets.com