It was a very bullish morning. There were three stocks from the Watchlist that triggered, and most of my current positions were doing well. Yet in the back of my mind, I was quite sure what would happen later in the day. I knew that most of these gains would disappear. How did I know this? Because I have seen it many times before. This has become the surest indicator I have seen yet. When the day starts off too bullish and momentum stocks are zooming higher, you can be sure sellers are going to show up later in the day. We saw the same thing just last Wednesday.
On last Wednesday’s retrace, the stocks that triggered from the Watchlist barely moved. The stocks that triggered today moved fairly well, and offered profitable opportunities for day traders. Let’s take a look at them.
RRC moved the most today, but it gave back much of its gains.
I haven’t posted a chart of BRY since last Tuesday, but I kept it in the Watchlist, as the base was holding. It moved, but gave it all back during the wave of selling in the afternoon.
VLNC also broke out early. Volume just wasn’t there for this stock. Needless to say, it also retraced.
This stock wasn’t in the Watchlist, but I posted it as a day trade for Friday. I day traded this today for a small profit, as it moved nicely in the morning.
The only stock from the Watchlist that didn’t trigger today was MA. I’m removing it from the Watchlist. It now looks like it could go lower from here.
I’m not too concerned about today’s selling…yet. This market is overbought though, and perhaps getting a bit tired. A lot of stocks are pretty extended right now, and will need to rest soon.
Good luck and good trading!
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