The market has been under pressure ever since over the last few days, and it has given up the entire gain of the feel good 1-day rally that we had after the Trump speech.
The focus now seems to be on the imminent rate hike that will happen next week.
There’s not much to do here. SP500 stocks at 20-day highs have fallen off a cliff, but a more important barometer (20-day lows) has only seen a small expansion. An expansion of lows is more important than a deterioration of highs.
SP500 STOCKS 20-DAY HIGHS
SP500 STOCKS 20-DAY LOWS
I have a few names on my long-only watch-list; $CLF, $FIVN, $LNG, $IIVI, $OAS, $ERX, $GUSH.
Oil stocks seem to be firming up a bit so I will pay close attention to $ERX and $GUSH.
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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