As tempting as breakout plays and “stocks holding up well” may be in corrective markets, the reality is that they tend to fail due to the overall state of the tape. There is not much to do other than keep them on your watchlists and see if they continue to firm up, so then when the broad market actually changes you are prepared to pounce quickly. For now, though, stocks like MLNX and some of the strong biotechs are failing to hold breakouts due to the broad market. Just as a stock breaks out in a corrective market, pirates come aboard the ship to steal your booty.
Also note, as you can see below, the market is unforgiving to bottom-pickers, such as ATPG.
More after the bell on the video recap.
6 Responses to Pirates Aboard This Ship
thank God. For a minute I thought it would be an ass pirate float or something. *whew*
Ah, ATPG. “We just hired this new C-level guy! To put his money where his mouth is, he’ll also buy $5M in stock with his own money.”
One week later: “LOL no he just quit after his first week on the job!”
Say “this market is a pirate ship” while stretching your mouth wide.
4t pension fund shortfall, jpm