After three days of rally a fourth day of rally was not a high probability event. So as expected the market continues to muddle in the correction zone. So not reading much in to yesterday's action.
When everyone and his mother-in-law is looking at double top, MACD, support break, cycle top etc.,and clueless bears comparing the markets to 1929, you find this obvious actions at such "technical trap points". Most of the times these are technical traps. Lot of people who follow such voodoo science take positions based on their indicators and then the market traps them. That is why you will see many breakouts/breakdowns happening at such technical trap zones.
This muddled action can shake out lot of people. That is what you are witnessing currently. If a stock has clearly defined catalyst, during such phase it might pullback but it will resume its intended path upwards or downwards once such correction plays itself out. Most well designed momentum based systems are self correcting, in the sense, the number of opportunities you find in your scans will decrease in such market environment.
So I see few opportunities, but still see some opportunities on long side. So here is what I have on watch list or has position in from yesterday's action.
AMKR,Amkor Technology Inc
BGP,Borders Group Inc
EPG,Environmental Power Corp
FNET,FortuNet
GMKT,GMarket Inc
GROW,U.S. Global Invest Inc A
GT,Goodyear Tire&Rubber Co
INT,World Fuel Service Corp
ISIS,Isis Pharmaceuticals Inc
KONG,Kongzhong Corporation
MLR,Miller Industries Inc
PARD,Poniard Pharmaceuticals
SRSL,Srs Labs Inc
STEC,Simple Technology Inc
SXCI,Systems Xcellence Inc
THS,TreeHouse Foods Inc
TRT,Trio-Tech Internat
URBN,Urban Outfitters Inc
No comments:
Post a Comment