The Record Breaking DOW
My rolling 5-day watchlist is my best barometer for the health of the market when it comes to swing-trading. Lately, the performance of the lists has been weak: stocks are not triggering, the ones that are are not seeing follow through.
The DOW has done well, and to most home-gamers that is all they need to see to say things are doing well. Yesterday at exactly 4:01 pm I get this alert on my iPhone from CNBC; BREAKING; DOW rises more than 50 points to record close as street cheers Senate passing tax bill.
However, the DOW was up 300 points intraday. We have 270 stocks down 4% or more versus 145 that were up 4% or more. 844 stocks were up from the open versus 2,094 that were down from down the open. Bottom line; it wasn’t as pretty as the headline sounds.
Talking about pretty, it has not been pretty for large tech names, weeks of gains have dissipated in a few days, look at $MU, $LRCX, $FB, $SMH, ETC.
My main interest today is SP500 and QQQ names that are down multiple days in a row and have an RSI2 lever under 5, all that means is that I’m looking for big cap names that are oversold in the short-term that have the potential to bounce.
While the reversal was ugly, according to historical data, yesterday’s action has a bullish tilt to it.
STOCK OF THE WEEK RECAP
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.
This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this blog constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog. The stocks presented are not to be considered a recommendation to buy any stock. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.
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