- The reversal after a ugly open was encouraging. However market is volatile and news driven. None of the numbers as yet are showing improvements in breadth on Market Monitor.
- However a 1000 plus breakout day on Market Monitor indicates a probability of move in the same direction.
- For all the negativity in the press and by various commentators, so far this market has again and again found it tough going below 20% level on downside so far.
- The current environment makes it tough to hold longs for longer duration. It is a market for very nimble day traders.
- Few stocks with leadership characteristics have started to breakout. But volatility increases chances of whipsaw.
- So very low risk levels and very few positions is the approach I would be taking. So instead of risking 1%, I will risk around .25% per position and try and keep overall risk to around 2 to 1% only at this stage. more
One new earnings breakout and close on four previous shorts
Market Monitor: Bearish