Last week was wild ride for the market. It was putting in a very sharp bear market rally from the recent lows, and as seen in this chart of the S&P 500, represented here by SPY, it ran into the 50-Day MA and began pulling back. .
Typically, in this market, this will lead to another move lower, perhaps lasting weeks. Will it happen this time? It seems likely. If so, the inverse ETF’s could provide a nice entry. Once I like is DXD, whose chart provides a good lesson on support and resistance.
I had one pick that triggered last Thursday, it was USO. It gapped up, which made it an avoid, but it did pull back near the entry price, offering a change to get it.
The reason oil has been on the move is because the dollar has been getting hit hard, as seen here in the chart of UUP.
Oil and the dollar have an inverse relationship. If the dollar continues moving lower, then keep an eye on commodities like oil and gold.
Investors Business Daily has 2 stocks blackoxed for tomorrow, they are: SNDA, MYGN
I was looking at some chart tonight, and saw this chart of BIDU, which I haven’t seen in a while. I had this as a pick in early February, but took a very small profit. Although it was a bit hard to hold on to, look at the amazing run it’s been on.
So yes, stocks can run in a bear market.
Because the market looks poised for a pullback here, I am still only considering stocks for short term trades on strong days.
Good luck and good trading!
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