Alll About Trends Mid-Day Update
Let's take a look at a name that's popping out on strength here.
About a week ago QIHU did the same thing and a day or two later broke right back down to the downside triggering the famous 7-8% stop loss rule right at a support level. I'm just not a fan of buying any stock AFTER its run 35 points like REGN just did. If it goes it goes, I'd just rather see it form another Pullback Off Highs as shown in the chart.
As for the indexes? Over the weekend we wrote,
"A pause that refreshes here would be healthy IF we were to work higher for a retest of the highs.
"That's IF we are going higher. I can build a case for the market working higher for one more 'Back To The Scene Of The Crime' retest of highs AFTER a pause that refreshes."
As we post this is still the case. We talked about at the least a pause is in order however we've yet to see that as of yet.
Funny thing is, I'm not seeing a ton of names that set the world on fire here and no low risk entries to be had after a four day burst. Today is the 4th up day so be aware of that. If we are going to just make a beeline for a retest of the highs then so be it but it's a major resistance zone too which isn't too far away either. Upside is limited and even more so now than when we originally said it.
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Game Plan For The Week Last week we also touched upon a phrase of the markets being very fast. We mentioned that the sell off was so fast that by the time your figured out the markets were in correction mode the bulk of the damage has already been done so shorting or stopping out was doing so after the fact. Here now we are seeing much the same thing only in reverse meaning we've already came up so fast that buying here you've already missed much of the low risk face of fear entries and are now buying after a lot of a move has already been made. That's a fast market! This is why we want to see how the week starts as it should come as no surprise that we are in need of some consolidation/digestion of gains via sideways thru time or pullback via price. We are going to lay low and see what develops the first few days to start the week. Click on this link for a free trial to All About Trends, use TM as your referral code. |
Disclosure: None.
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