This month it has been all about the indices, most individual stocks are not really participating in this recent up move. Here are some stats:
- The Nasdaq started this month at 4408 with 67% of all stocks above their 20 day ma, today we are 4473 with only 41% of all stocks above their 20 day moving average.
- The Russell 3k etf $IWV started the month at $117.74 with 67% of the stocks within the Russell 3k above their 10 day ma, today we sit at $118.28 with only 41% of the stocks above their 10 day ma.
- The advance-decliners (NYSE+NASDAQ+AMEX) 10 day moving average is negative.
- We have more stocks down 13% in the last 34 days than up.
- My best swing trade barometer, my rolling 5 day watch-list has been dead.
This does not mean go out and short, if something is not bullish it doesn’t mean that it’s actionable in a bearish way. It means that there is a time to be aggressive and there is a time to lay back as a swing trader. You have to be aware of the current situation and accept it or you are going to chop yourself to pieces in this type of environment and kill your confidence. So, if you are struggling to gain any traction this month, it is probably not all you unless you are the bearish type that wants to short every divergence.
As for me, I’m moving pawns around preserving my lead.
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