It never ceases to amaze me just how unpredictable the market can be. Just this weekend during my video review, I mentioned my concern over the pullback and how I felt it could easily go further. With that said, I believed the drop would provide an opportunity rather than a bigger warning. When the drop came earlier this week the underlying stocks in my portfolio and others on watch were not hit nearly as hard. This led to a Tweet mentioning how the underlying stocks were not as weak as the overall indices suggest. I mention this only because this was not some random prediction but rather unbiased observations. If I had held some grand thesis I don’t believe I would have been able to take advantage of the opportunities.
Today the market is advancing back towards the underside of the 50 day moving average (SPY Daily) and we’re far from out of the woods. While this is happening the underlying strength in beta names is far greater sparking the portfolio to gain close to 1.5% as I write and pushing it to new all-time highs, not seen since January 27th.
I have no idea where we will go from here but many names are acting well and look to be gaining new momentum. Some of my favorite, Pre-1x setups includ: ACM, AXTA, FFIV, GDDY, GS, INTC, INTT, JIVE, OMN, PYPL, SEV and VMC. I’m long all mentioned and you can review the setup or trade by plugging any single name into the search button at the top right.
Trade ’em well