Three attempts at breaking the 50 day, 3 failures (although I’m not sure if Friday would count as an “attempt”). In addition, we have had sell-offs at the end of each of the last 3 days. These are certainly not good signs for a bull move, but that doesn’t mean we won’t get one. In looking at the SPY, volume was low again today. Notice that RSI has plenty of room in either direction while MACD and Stochs are pointing up but have yet to cross. I think when a “decision” is made, volume will correspond with the move and those oscillators will either cross or become more defined in the direction of the trend. Until then, let’s sit tight and play it safe and enjoy the ride.
REVIEW OF YESTERDAY’S PICKS:
$AXP: You would have gotten triggered in at the end of the day
$LULU: You would not have gotten triggered in.
$POT: You would have gotten triggered in at the end of the day.
I’d like to take a second to point out TSLA: I picked that stock last Wednesday if we closed above 107.20. If you had gotten in, you would have been down slightly Friday, but up huge today. Once again, I did not take my own advice, but my confidence is building!
REAL ACCOUNT ACTIVITY:
$POT OPENED I bought 3 contracts of $POT at the close today. I’ll post a chart here to further show why I believe this is a good trade. Not only are we below all of the SMAs, oscillators support the move and volume was huge today, but take a look at this medium term wedge-ish pattern that was broken today: I am going to put my stop at 38.30 which corresponds to a gap from 11/14. Although my first target is 36.80, a close below that should send this stock lower. Let’s see what happens.