The major averages are rallying this morning, with the mega caps in the Dow Jones Industrial Average once again out in front.
Still, leading issues like AMZN GOOG NFLX PCLN, among others, are noticeably red. This could easily be a sign of a market still under distribution, or heavy selling buy institutions, being covered up by the strength on the indices.
Thus, I am still operating under the theory the market is in a corrective phase with risks to the downside, where great defense is the name of the game.
On the 30-minute chart for the small cap ETF, watch price testing the declining 20-period moving average (orange line) for the first time since Thursday. Rejection here would open up a short entry.
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what is in the cards chess, rotation ? into ? preparation for else ?
Or the rotation runs its course and they follow leaders down…
ALSN : Chees, I like this as a short. Failed placing last week at 30 means clear supply/forced sellers and a stop loss at 30.10. No short interest and no earnings report. Rough target of 27.50 give risk/rew of 7 to 1.
SOXS : maybe now is the time.
Its the great trickster market, the megaphone market. Just when you think its going down it will go up. Defense indeed!
More MnA news in pharma this am and BIS still goes up. Like it.