I offered two long ideas last night, HUN and SONC. However, both are struggling today, with Huntsman giving up yesterday’s bullish progress, and SONC reversing lower from a breakout this morning. They are, overall, still healthy charts.
But the point is that even the best-looking individual breakout plays usually need the broad market at-large to cooperate, by acting constructively and permitting them to succeed by breaking and holding higher prices. Instead of becoming discouraged or conveniently sweeping price action like this under the rug, a better approach is to use this valuable information to form a bias about the market.
As noted above, these plays are still worth watching going forward for higher prices, much like the broad market. But just as with the broad market, or perhaps because of it, breakout plays in the next day or two are on hold while we pull in.
At least eight out of ten stocks move in conjunction with the broad market’s current character. And today is no exception, with 1548 apparently lost on the S&P 500.
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