Could the market experience a swift and severe move to the downside similar to January and October of 2008? Certainly it could. More likely though is that the indices are going to gyrate up and down, within a range. It appears to me that we are near the lower boundary of the recent range. I am looking for some strength over the next several days.
However, in a bear market, anything can happen. Thus, positions should be small, and stops must be applied.
Should the markets gather some strength here, the following stocks should respond favorably. They are showing excellent relative strength, but are short-term oversold.
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AVAV is a good one. It’s on my leaders list and will buy soon. CAL and DAL, however, are actually oil trades, no? they will be good shorts if oil can bounce (when will that be??)
DJX breakdown ahead of other indices may be like last summer. VIX at over 1 standard dev is good for a short squeeze and a bounce, but probably big hands need an orderly route down to correct values with as little bankruptcies caused as possible in the process. Thanks for the picks dood
Gio, I’m assuming that the aeroliners are an oil play. I try not to second guess the charts though. They are bullish.
Thx Aumana, I usually don’t look out more than 5-7 days.
What sectors or etfs are you looking at that will lead the way?
If markets are feeling bullish tomorrow, I’m buying more DZZ for a trade.
Same, the Jonas brothers can make any song a decent song .