Monday’s rally may very well have been the start of a fresh leg higher disguised as a mere overdue bounce. The prevailing sentiment seems to be that the rally was not particularly convincing on several fronts, though that may precisely be part of Mr. Market’s clever plan to frustrate the majority as it confirms higher.
Instead of picking short-term bottoms, though, the larger point of staying focused on the intermediate-term uptrend that remains intact on the major averages has been the crux of my analysis of late. My goal is to be prepared and properly positioned to strike on the long side if the rally continues higher. If more time is needed to correct/consolidate, then patience continues to be the focal point for swing traders.
I have noticed quite a few charts of leaders from the summer that have had time to base in a bullish manner, namely KORS. In addition, other retail plays, such as PLCE and PVH, are charts of interest on further strength.
____________________________
____________________________
____________________________
Chess, on KORS, I understand the basing thing, but based on the lines you drew above the base, when would one be looking to buy this stock? Simply put, what level is the breakout acted on? If it is $54, why not $57.35 the top of the last push?
More of an art than a science–The gist of it is that further strength is bullish out of the two-month base.
Roger