A upside breakout in the market was not a big surprise. In last few days lot of stocks were breaking out with nice patterns. They were the early leaders. Besides that 3 times market rallied back from intra day selling in last 10 days. So even though there was breadth divergence the market never had any serious selling day.
Coming in to yesterday I was more than fully invested and used the opportunity to book in some quick profits. There are over 100 good buyable breakouts in my last night scans and I pointed out some of the better ones intra day.
One sector attracting lot of buying yesterday was the metals and there were some nice breakouts in the sector.
4 comments:
Please note that I am *not* being critical with this question. I know that the market can change in a nanosecond, and one's market perspectives should change quickly as well. Question: In the Oct. 26 video, based on your breadth indicators, you expected a negative market correction in 3-5 days. Today, you indicated you were fully invested going into Nov 4. Can you please talk about the change you saw in the market that led from a "negative correction" to a "fully invested" position in 6 trading days? Did you see that change in your breadth indicators, or was it in the number of small cap stocks setting up? Thank you, Mark.
It was in the number of stock setting up and the kind of breakouts showing up in scan. That indicated the market was headed higher and I highlighted that couple of times later in the next series of videos.
Thank you for the fast response. Having very overbought readings in your breadth indicators, but seeing a good number of stocks breaking out...is this a normal occurance? Or something that only happens on rare occasions? Thanks.
It happens at start of major moves.
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