Not surprised by the market weakness

Last Friday I had posted a caution on the blog and yesterday we got a big down day. You can go back and see that post.

When number of stocks up 50% in a month goes up 20 plus. (as measured by using Telechart and using liquidity and price filter)

Exact scan used is:

 C20 >= 5 AND (AVGC20 * AVGV20) >= 250000 AND 100 * (C - C20) / C20 >= 50

When you get elevated readings like that you have to be cautious and protect profit.

As market is now in correction the number of anticipation setups have decreased but as soon as selling stops those still showing good action bounce back hard.

Anticipation Setup for Mar 26, 2015

SSP JRN TWOU

Are some of the stocks today on my watchlist.

All three stocks are holding up very well considering the market conditions. When the market turns, the chances of these stocks breaking out are high if they continue to act like these.

Meanwhile I am also looking at bearish anticipation setups. The bearish anticipation setups use similar logic to bullish anticipation. Bearish anticipation setups work best in bearish market. But we have not had a sustained bearish phase for many months. Most pullbacks have been very shallow and of few days in duration.