While I eventually need to see some consolidation before becoming aggressive on the long side, there is no sense in fighting this tape as it squeezes higher. A name like AAPL had come down quite hard in the past few weeks, and bears got caught trying to push the envelope too much, too soon. A vicious short squeeze, though, does not automatically equal an excellent entry point for high probability trades. So, timeframes should still be kept rather tight here. With the way this market has either gapped up or down at the open over the past few months, one thing is for certain: If you try to catch every single move you will find your account chopped to pieces.
One short idea that I like because of its broad base that has potential to move much higher is MED. No position yet for me here, but I am stalking it. Note the potential inverse head and shoulders bottom with a neckline at $17.85.
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Kind of light on volume. Do you factor that into your analysis at all?
Yes, Another reason I am letting the market prove itself here first.
Chess- Are you looking to short this at the neckline? Or are you looking for it to move much higher on a break above that?
I’d look for a short squeeze above the neckline.