Despite the exciting rally today, the extremely low volume left a lot to be concerned about. The indexes are getting very close to the 50 day moving averages that are in solid downtrends and this could act as short term resistance to this rally that is continuing to lose steam, via the volume, on each day of this Holiday shortened week. If we have another up day Friday, volume will be even lower and will have us setup for an even higher chance of a failure. The good news which is different this time, compared to others in September and October, is that bank stocks look to be trying to put in lows, gold stocks are strarting to round out from possible accumulation near the lows, and stocks like COGT EPIQ NCIT UTI GB AXYS EBS TSYS LOPE HEV DMND ISYS CWT ACM DLTR CPLA INT NJR and WPP are all trying to create right side of bases to become possible future longs. Stocks like AXYS, COGT, EPIQ, NCIT, DMND, and UTI sure do have a lot of near-term potential. Hopefully one more round of base building with low volume and heavy accumulation with green to max green BOP will come into these stocks and we can soon get long. I know I need to make some money to prepare for the possible horrible future we might face. Hopefully, these stocks will setup up PROPERLY soon.
new long positions: none
none
Comments are closed.