Let Your Stocks Tell You What To Do By The Action They Exhibit
Courtesy of David at All About Trends
Follow The Leaders!
While everyone is fixated on the indexes we prefer to focus on the leaders.
While the indexes have gone lower the the last few days breaking into new lows during this pullback off the 1130 level on the S&P 500 a fair amount of names have stood pat, broke to new highs, or just pulled back to support levels or even the 50 day average. Relative to the indexes these names are showing strength! Just look at the charts of three or our current positions:
NFLX — Netflix
AKAM — Akamai
SNDK — Sandisk
What we want to you to notice is two things:
2. Is this what your whole account looks like? If not, why not?
It’s the end of the quarter and if they want to run the markets into quarter end, it may have started with Friday’s positive reversal.
While the indexes haven’t shown us anything, many of our current positions staged positive reversals Friday and those that haven’t have pulled back in an orderly manner and are right at key support areas such as the 50-day and their upward trend lines.
That said, the following statement applies to our trading decisions:
“Let Your Stocks Tell You What To Do By The Action They Exhibit”
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