Morning folks. Market looking like a flat open today under pressure from a soso report from Hewlett Packard and some others and we digest the numbers from housing starts. Yesterday even though the indexes had only slight losses (except for QQQ which got nailed) we saw quite a bit of carnage in individual stocks. If you look at the action in some of the momo names we trade REDF, SIFY ETC there was significant breakdowns through major support levels. We also did start to break some support levels notably we closed under spx 1330.
The key will be if we get downside follow through. One day or 2 days doesn't signal trend changes. In the past 9 months what has been missing from the dips or corrections is follow through. Very rarely have the bears mustered up enough gas to take us down another level. Key support levels to watch will be the 50dma on the spx 1323. If we break below this a drop to 1300 would be in the cards. I'm using the 20dma as my upside resistance level for any bounce today if we get it. We are kind of in no mans land. I sold off almost all my swings yesterday for nice profits (mostly biotechs) and am nearly cash but waiting to deploy.
Some stocks im watching
as you can see there aint much special out there in terms of setups which in a way is kind of good. Usually when the setups are the ugliest you can make the biggest % gainer traders.A week an half ago I went through charts and every chart looked like a breakout it was impossible to keep track of which ones would go your list gets to long and they tend to just be duds. Ugly charts can be good if your having trouble trading this market just watch and make your watchlists. Make wishlists of stocks you would love to have and notate the price spots you want them at.
