It’s only natural for the market to pullback after such a huge up day. However, the pullback to me in stocks and the actual indices was a little more than what I was looking for.
The SPY, IWM, COMPQ, all closed below Wednesday’s low.
Only time will tell if it means anything, one thing is for sure; you can point out breadth divergences across the board, but new lows are not expanding. The expansion of new lows is more important to breadth measures than stocks not printing highs while the SP500 is.
I have a few stocks on my list today; $INVE, $CNAT, $FIVN, $TEVA, $QTNA.
We have an interest in these stocks if and only if they can get through yesterday’s high plus .10-cents, that is typically where our buy stops will be. This single criterion will narrow down the list to a handful of names unless of course, the market is super strong. You can also narrow down the list by float, price, sector, or whatever your preferences are.
These ideas are what we consider swing trades that can last anywhere from 1-10 days. Most stocks if not all go through momentum burst that lasts 1-10 days, that momentum burst is what we look to take advantage of.
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at firstname.lastname@example.org or 646-480-7463.
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