The sell-off in the equities market will be tested tomorrow, since follow-through to the downside has been difficult to come by. If the buyers are spooked by the ISM data, then our watchlist is going to be built to take advantage of risk-aversion.
The breach/retreat with directional bias approach worked perfectly, and here’s how I set these up each morning.
I outline the details of today’s breach and retreat as well as HPMRs and walk through what the crude oil and copper markets say about what we could see in the next few weeks.
I like the pullback we are seeing in SMH, and I like a couple of relative strength names for a potential trade for the run into earnings. Let’s look at SMH, LRCX, TXN, and AMAT.
The market held up well today, but I’m seeing clear heroes and zeroes. Let’s look at some of my favorite run into earnings setups in AKAM, MSFT, GOOGL, and AAPL, as well as some not so hot tickers I’m going to avoid for this trade. We will also discuss defense and semiconductors.
Getting an early edge using the clearing range breach, we were already bearish going into the US/China news. Having directional bias is the key, and I explain how to do it in this video.
