All bets are off.
The nascent uptrend is broken. The market will do whatever it wants to do, it's futile to predict. But we can watch and follow. Make our mental bets and be ready. The market can (a) deteriorate or (b) retest the lows.
(a) If the market deteriorates, things can get ugly. The action has been in mid-to large caps - the small caps have been thrown out and abandoned long ago - but even the big guys are wobbling. Up until recently the QQQ/SPY stocks looked OK, but not after the last week. The averages now look eerily similar to May 2008, when the market was just coming out of a bad correction and - wham! - broke wide open, losing 50% by March 2009.
(b) People act on their most recent memories first but the market rarely offers an instant replay. The prevailing negativity bodes well for a contrarian - bullish - opinion. A retest of the low may clear a way for a new leg up.
If things were always clear, investing would be easy. But often they are not - until it's too late. For now it's best to keep your powder dry while focusing on the watchlist - hence the Top 10 DreamList last night; but if you must trade some QID or SDS may be appropriate on the short side for either a retest of the low or a new leg down; and on the long side the stronger the growth the more likely a zoomer to defy gravity. Here's a few candidates (if
the market deteriorates, they will be the last ones to fall, if it rights
itself, they have the potential to become the next big winners): [...]
[Please see the Special for specific stocks.]
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