Since last Wednesday when I warned of a potential break in the uprend line of the QQQQ, I have emphasized the importance of being cautious in this HIGH RISK market environment and hopefully you have adopted that stance in your own trading. Despite my cautiousness, I have also mentioned numerous stocks I thought may be bounce candidates, now we will review those stocks.
AVCI– the stock is down slightly since it was mentioned and it appears to be struggling to find support, if you own this one a stop should be placed under 6.00
CELL– this stock broke past a short term stage 1 yesterday morning and added nicely to its gains throughout the day. If you are in it a stop should go just below 22.00
CTXS– the stock failed to take out thehigh of stage 1 on Tuesday and should not have been purchased. Righ tnow, the stock has made a higher high and a higher low on the 10 minute timeframe and it could be poised to continue higher with a stop near 39.90.
IMMU– this small stock broke down through support near 3.05 and should have been exited on the break.
PCLN– is in a short term stage 2 uptrend and continues to display excellent relative strength, stips should be near 28.65
MGRM– finished higher thanks to a nice rally at the close yesterday, stops should be near 2.17.
NTGR– was up yesterday and the stop should now be placed just below 23.00
GPK– finished the day slightly higher and now needs to get above 3.60 for momentum to push the stock higher, the stop should be placed near 3.30
PCLN– see above
ABAX– failed to show any strength and the stock should be avoided.
All in all, most of the stocks mentioned as potential longs are flat to slightly higher, not bad considering the severity of the selling in the broad market averages. Hind sight makes me wish……Never mind hind sight, it is for losers. Looking back and reviewing trades to learn what we could do better is what successful traders, but don’t beat yourself up for bad trades, learn from them and move on. There is more to life than trading.
There are few traders who make money in the type of market we have seen over the last week (if you are one of them, congratulations) and the best choice for most traders here is CASH. Until the macro uncertainties regarding inflation and interest rates are wrung from the market you are best off protecting you cash so you have plenty of ammunition when the market regains its footing.
I looked at a few stocks this morning but could not find anything worth mentioning. Again, the market is oversold and due for a bounce. When we get one, it will likely be quick and catch many participants off guard, myself included, because there continues to be no technical evidence of a turn. I will not be in front of the markets again today but I will be back with an objective view of the action after the close.
Reminder– I am traveling this week and will resume videos this weekend.