Tuesday, December 4th Recap
After yesterday's "bearish engulfing outside bar" we saw a dip below the broadening formation that we posted yesterday, followed by an attempted recovery. We closed the day slightly below the 8-day, and I'd say that a little more digestion is in order. As of now I still remain bullish, as we still have only retraced almost exactly 23.6% of the move from November 16th. I still think a test of 140 is probable, and still constructive if the bulls can regain some momentum.
In short, as the market is digestion/slowing/losing momentum - or whatever you'd like to call it, the most imperative thing to do is find the stocks that are market leaders. For instance, stocks like FSLR, PCLN, EBAY, AMZN, and YHOO are our clear market leaders as of late. In times like these it is very important to really stick your game plan and not force trades. Do your research, find the strongest sectors, and the strongest stocks within those sectors. As I said yesterday, there is a lot of dead money out there and you will get caught in a bad trade if you don't watch yourself.
Tomorrow I'll be looking to see if NFLX continues it's killing from today, as well as FSLR. In addition, I'll still be watching LNKD, AMZN, SBUX, FB, CMG, QCOM, and SSYS.
In short, as the market is digestion/slowing/losing momentum - or whatever you'd like to call it, the most imperative thing to do is find the stocks that are market leaders. For instance, stocks like FSLR, PCLN, EBAY, AMZN, and YHOO are our clear market leaders as of late. In times like these it is very important to really stick your game plan and not force trades. Do your research, find the strongest sectors, and the strongest stocks within those sectors. As I said yesterday, there is a lot of dead money out there and you will get caught in a bad trade if you don't watch yourself.
Tomorrow I'll be looking to see if NFLX continues it's killing from today, as well as FSLR. In addition, I'll still be watching LNKD, AMZN, SBUX, FB, CMG, QCOM, and SSYS.