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Price has memory. When you arrive back at the top of a multi-month trading range in a literal straight line, days like today should come as a surprise to exactly no one. The strong probability is that in the short-term supply will overwhelm demand, as is happening in the market as we speak. Again, you have to keep timeframes in perspective. Daytraders are trying to maneuver in and out of this market, while long-term buy and holders may very well be standing pat here as they believe we have put in a major market bottom.
For me, though, the case is that I am a swing trader looking for that elusive higher low, along with an abundance of individual charts that will firm up for better entries. We have already come in 20 points on the S&P 500 since the highs of Friday. The bulls cannot afford to let price slip too far away from them, even if a pullback was overdue and healthy by this point.
A prime example of the type of name that I am watching here is BSFT, which I discussed in a blog post this weekend. We know that the firm is growing at breakneck speed, and saw some impressive buy volume during the recent rally. However, that alone was not a reason to come in this morning and aggressively buy it. The idea is to look for a constructive consolidation. There is no guarantee that happens, but if this $36/$37 area can hold along with the broad market, then I like what I see.
As always, we are in earnings season. So, be cognizant of when all of your holdings and potential trades are reporting and prepare accordingly in order to mitigate risk.
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Yes, yes, yes, and yes
God bless dirty sluts
ACMY?
No one said they were geniuses.
For the record, they are spelling out the Village People’s “YMCA”
The image is flipped as photographs are. I believe the dirty sluts are correct.
I’d hit the M all day. Ahh, who am i kidding… I’d hit them all (or perhaps I should say I’d hit any of them that would have me). lol