In Sunday's post, I talked about not trying to game the first bounce and playing the second bounce. The first bounce is underway. I expect that we will see a retest of the recent lows shortly. Assuming they hold, that is the bounce to play.
Volume was not good today. Volume is what fuels the market, so don't expect the market to rocket from here.
If the August lows eventually breakdown, that's a sign of a full fledged bear market.
Stocks that mounted resistance, like AAPL, are off the "shorts" watchlist. Stocks that have not, like VMW, are still on it.
I'm sticking with stocks that held up through the decline, like DCO.
If we correct and a new bull run emerges, expect some new leaders. I'm betting aerospace/defense will be among them. This sector includes stocks like DCO, ATK and BEAV. All had great earnings and nice breakouts.
I am licking my chops at the housing stock bounce. Another opportunity to short this sick group.
If Sunday's episode of Curb Your Enthusiasm was its swan song, it sure went out on a high note. Definately one of my top 5 favorite comedies of all time.
No comments:
Post a Comment