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There are times in the stock market when it is important to not become too dramatic. Just because a rally gets faded into the closing bell does not mean that we are suddenly in the midst of a huge inflection point. Similarly, when a selloff does not close at the lows of the day, it does not necessarily mean that the bears have lost the initiative.
In my view, however, the current market predicament is of a most critical nature. As an example, check out the updated daily chart of the Nasdaq Composite Index, seen above. If the Nazzy loses this crucial support level, a retest of the July 1st lows seems all but assured, as many stop losses will be triggered. Alternatively, if the techs can find support here, we should be setting up for a nice rally (I am positioned for the latter scenario).
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[youtube:http://www.youtube.com/watch?v=7_q0wn5oQKU 450 300]
I believe in the PPT, and I have positioned myself for it (with proper stop losses of course).
Glad to see you survived your birthday celebrations. 🙂
Thanks Kenai 😉
quick question :
mkt rallies, finds res, closes at low
THEN
consolidates the next day, not breaking higher nor breaks down.
what happens the next day?
Le PPT says it rallies in this situation.
Does PPT take in to account earning disappointment such as AONE? Also ENER big dive after PPT buy signal? I am trying a few trades following you guys to see how well PPT works. I had a few small wins but in big loss with AONE and ENER. That is even with me having sometime to watch market during summer break. Not sure how it will work for me once school starts that keeps me away from watching market changes.
PPT takes everything into account that is known and knowable, pretty much. You would be surprised how thorough it is.
That was what I thought. But after following in to AONE and ENER trades seeing those lost 20-30% I feel confused.
it is very risky no matter the strategy to buy a stock before earnings.
Indeud.
Especially the way things have gone this earnings season. Unless you completely blow away expectations prepare to get bitch slapped. Some of the companies I follow posted in-line or even small beats and still got slammed. No, they didn’t get toasted to 20% declines but good 5 – 10% sell offs were not uncommon.
Playing earnings to the short side in energy stocks has been a pretty safe bet this round.
Thanks a lot and will learn from this loss. Before buying anything know the coming earning date and make sure there is time to get out or light up.