Resumption Or Change Of Direction

Resumption Or Change Of Direction

The SP500 has been in pullback mode for the last two weeks; it now sits on top of its 50-day moving average.  Just as the Twitter folks started making fun of the bears and screaming that new highs were coming the market stalled. The Nasdaq composite has not faired as well as the SP500; it’s down ten out the last 11 days with -4.4% return. The cheerleaders from the 2100 level are nowhere to be found now that the market has a more favorable risk-reward ratio.

The Non-Farm Payroll numbers are due out at today at 8:30 am, this could be a market moving event and or perhaps will serve as a catalyst to resume the recent trend or as a direction changer.  No one knows.
What I do know is that the selling has not been intense, and a lot of stocks are down multiple days in a row (3 or more) sitting on top of what can be possible support.  If the market can start moving higher many stocks will offer great risk reward trades for the short term.
TNA, TQQQ, HLX, FMSA, BTE, YRD, CENX, PAH, NOW, AVH, R, SUN, PCAR, JCI, MANH, PAY, MPC, PSTG.  Normally I only like to get involved in trades if they can get through their previous day high. However, most of these stocks are down multiple days in a row, what I’m looking for is a green candle, that would be the trigger and the previous day low will be the stop.

My opinion and outlook are subject to change as new information comes in. 

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 fzorrilla@zorcapital.com or 646-480-7463.


          


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
By |2018-02-02T12:08:18+00:00May 6, 2016 6:34 am|

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