The market is settling down in to range near recent lows.
This year range bound action has been a common theme. First Six month the market had range bound action near high. Now we are settling in to range near low.
Three days of up action has lead to many beaten down stocks rallying to levels from where shorts will be watching carefully. Most stocks that have rallied for 3 days or more on weak volume after big drop will be on short radar. OTEX is a good example of that kind of setup.
Setup like this are showing up due to bounce. But will require overall market weakness for these to work.
In the meanwhile it is still a day traders and value investors market. No momentum setups showing up as yet but some are in early stages of development.
This year range bound action has been a common theme. First Six month the market had range bound action near high. Now we are settling in to range near low.
Three days of up action has lead to many beaten down stocks rallying to levels from where shorts will be watching carefully. Most stocks that have rallied for 3 days or more on weak volume after big drop will be on short radar. OTEX is a good example of that kind of setup.
Setup like this are showing up due to bounce. But will require overall market weakness for these to work.
In the meanwhile it is still a day traders and value investors market. No momentum setups showing up as yet but some are in early stages of development.
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