This market is schizophrenic. The argument that the bad news is priced in seems too convenient to be plausible, although it is hard to argue with the action. The VIX is fixin’ to break beneath a month-old trendline. The more bad news we get, the more I see traders buying breakouts. Sentiment shifts between bearish and bullish, within an hour’s time. But what has changed? Nothing, at all. The markets are still consolidating. Moving into big positions here, betting on a move in either direction still seems like a pure gamble. I will wait for confirmation. Overall, I feel like the steers have been given a little rope, so that when they finallyÂ stumble blindlyÂ over the edge of the cliff,Â the noose will bite and their heads will be ripped clean off, effectively ending any discussion about whether this is a correction or a true bear market.
That being said, I will still go long if that is what the technicals warrant, and honestly, the breakouts have been developing more and more quality technicals over the past couple of weeks.
Technically, [[GTRE]] is not a breakout. I still love the chart, nonetheless, and will watch for a pullback.
Â Do not forget that breakout plays are by their nature overbought when they setup. Be sure you can stomach theÂ pullback which inevitably follows the breakout. I have not checked earnings or any other fundamentals on these companies.