Wednesday, August 3, 2011

8/3 - bullish reversal candle (buy stop)

LSI - short took a plunge + long barely crossing - cautious bullish


SPY - pattern similar across all indexes, except QQQ less low vs June lows


VIX - not a big move, but i think its okay...means that the pullback might be stronger than ppl expect


XLF - reversal candle on good volume like all other sectors but this is the most battered chart of them all


XLI - most battered of late...looks very ripe to get back to the breakdown levels in the next few days

NYMO - bounce off that super oversold level...


Strongest Sectors today: XLK, XLI
  • bad job news, yet rally to close near highs

Because it feels like an oversold bounce today because of bs reasons in the news trying to explain the rally, i think the best stocks to go long on are the way oversold ones...the strongest buyers will probably be the value investors and definitely they will either hit up the way oversold, battered industial or pharma stocks for the strong tech stocks that have pulled back and are now good values again. Today could have been an entry day at the EOD just based on the candle but i think its still safer to just get in on a nice move tomorrow...any pattern will work including super solversold stocks like PEP and AKS

I held off on buying some pretty bearish patterns today and it turned out to be a great idea...had i not cared about the market i would have gotten in and been nearly stopped out by the eod...

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