The market opened with bad news from Shanghai, with their index closing down –5%. It looked like today was going to be a sell-off. Although it wasn’t a great day for the market, the indexes did hold up alright. The NASDAQ appears to be consolidating up here.
The indexes are all very extended, but sellers have not been able to topple them yet. When they do, the correction could be ugly.
I posted an early trade on Twitter that I didn’t have on the Watchlist. It was AVP. It moved a little after I got in, but then pulled back. Other than that, there was one trigger from the Watchlist, TSRA, which looks good here.
I really try to stay away from ad hoc buying and selling in the trading day. I have had bad experiences with this, and prefer to only watch those stocks I have chosen in the previous nights research. Otherwise, I am chasing stocks and getting in too late. On a choppy day like today, that can be disastrous, so I should have avoided the AVP trade.
The other mistake I made today was holding GMCR into earnings AH’s. Earnings disappointed, and it looks like it could gap down by 10% or more tomorrow. I was only holding 25% of the original position, and 10% of that would only be a small amount of my account. But holding into earnings is a gamble, and this time I lost.
I got stopped out of some positions today, but some are holding up well. I am impressed with how this market has not sold off, even though it is overbought. I would like to catch some big movers again like CHINA and LEE, that offer 20% gains or more in a single day.
There are still many charts that look good here. I had a list of 32 charts that I thought looked good on the long side. No doubt a couple of them are going to make big moves soon. Hopefully, I picked the right ones for tomorrow. Here’s what I’ll be watching:
Good luck and good trading!
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