Last Friday I had put a caution because of the excessively positive breadth. This leads to corrections or pullback and we saw that yesterday. We will have to see if we get a follow through to yesterday’s action. Follow through has been absent last couple of times as dip buyers come back every time.
AAOI HASI JMEI MVNR IIVI XENT ISLE CRUS OLN JBLU SPTN
Are some of the stocks today on my watchlist.
What to look for in good anticipation setup
- series of narrow range days in pullback/consolidation
- orderly pullback with no 4% b/d during the pullback or consolidation
- low volume pullback
- low volatility during pullback
- linear first leg if looking as continuation setup
- Stock should go up smoothly and not in volatile manner
- 3 to 10 days consolidation/pullback
- not up 3 days in a row