As mentioned last week, the S&P 500 needed to hold a support level. It closed below that level on Friday.
One way to play this is by going long SDS, which corresponds to twice the inverse of the S&P 500. There is some resistance in the 65 area. Once it trades above this, it could be a good entry.
There is a bullish case for the market as well. Last weeks pullback was on very low volume. We are still in a confirmed rally, so there could be some upside. It’s best to be prepared for both scenarios as we head into a new month, a new quarter and earnings season. The market often does the unexpected. But make no doubt about it; the primary trend is down.
There was one trigger from the watchlist on Friday, it was ANR. It provided a max gain of 1.32% before retracing. With Friday’s market action, that was a gift.
If the market rallies this week, ANR could provide another opportunity.
March has been a day traders market. Not at all like February, where many of the picks posted here provided excellent swing trade opportunities. Unless it’s a strong uptrending day, I plan to continue taking profits at 1-2%, which as pointed out earlier, can add up quickly.
There are some good charts going into the week. If we do rally, some of these stocks could make some nice moves.
Good luck and good trading!
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