The indexes are up against key resistance, however, there are several names on my list of stocks I want to buy when the indexes turn around. ZS is my favorite. Why? It’s a honey badger, it has high short interest, and it clearly has no idea about a trade war. Here are the parameters.
My hopes for the short squeeze last week were diminished as the Nasdaq and S&P hit key resistance zones and failed. A short squeeze really needs to be strong enough to break resistance, and close above it, to alleviate the likelihood of more downside. At this point, the path of least resistance is down. I have an SPX short on, and I’m stalking these charts for possible buys on the dip — but, they aren’t ready yet. ZS, AXP, MSFT, COST, MCD, PAYC, CHGG, LYV and more.
In this video I share a great resource to learn more about how I use Dow Theory and what daytrade we took today before the market sold-off. One of the takeaways here is to look at a trading day as two or three parts and not as a whole, especially with shorter-term time frames.
The airport closing in Hong Kong sent the markets lower before the bell and clearly took the risk appetite out of the market. The USDA crop report sent corn limit down, and the recession talk doesn’t stop. What’s a trader to do? Look for relative performance. We discuss that and this morning’s NQ daytrade in this video.
I am still looking at the stock market re-visiting the area of the near-term highs. I am not bullish but rather playing this market for what it is as of Monday: Chop. Grab the Dramamine. It’s still gonna be a bumpy ride.
I am still looking for more near-term upside to the resistance of this now distribution market. Here are the levels to watch.
