All About Trends’ Subscriber Mid-Week Newsletter
Courtesy of David at All About Trends
When all is said and done the indexes were a bore today. That is if you were watching the Dow and S&P 500. BUT the OTC? Ohhhh My! That is where all the damage was done.
However when one looks at the OTC index it really doesn’t look too bad but under the surface? Make no mistake stocks got hammered and hammered hard. BUT folks? This is why we pay attention to the leaders. They are called LEADERS for a reason and that is THEY LEAD THE MARKETS. More often when they fall apart the rest of the market isn’t far behind.
Is it really that simple? Yep it is. Resistance is resistance and that is that.
We’ll see if that is the case with each of the indexes. If the leaders are talking (and they are loud and clear) we’ve got more work to do to the downside, that is till Uncle Ben and his wild rice gang show up. Nothing surprises us anymore.
The other thing that comes to mind is earnings season is right around the corner so we’ll have to see how that starts to take shape. Heaven forbid anyone misses, just look at the warning out of EQIX – Equinex. These guys warned and the stock imploded 33% today.
There are some names that we’ll want to watch real close in here for a long entry even if it is just a probing position. A name like NFLX does come to mind as it isn’t too far off that 50 day average.
That low 140’s level sure looks appealing, heck any break below today’s lows (148.46) in a push and one may want to take a probing position on the long side and then sweat it out. I know that’s what we’ll be watching for.
Lastly in the OOC (Out Of Control) department:
Reminds me of NFLX and BIDU recently when they went vertical. If thinking of getting emotional and buying some? We have a saying around here and that is:
Chasing buses is hazardous to ones health as shown below:
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