Courtesy of David Grandey.
So where’s the problem? What problem? Look at the charts below. See any problems with this uptrend? We see nothing that makes us stand up and take notice. What we do see are indexes that are in clearly defined uptrends that are pulling back off highs to prior support levels and moving averages — plain and simple.
Yesterday’s action is EXACTLY WHY WE DO NOT CHASE BUSES AND ALLOW STOCKS TO COME TO US. The last four days wiped out a month’s worth of gains!
For now? It’s all about backing and filling and a market of stocks.
Say by the way do you see all those nice names and indexes in clearly defined uptrends that have all just at this moment in time pulled back with those uptrends still being intact?
That’s where our focus is and that is how the market actually talks to us.
Take CLR for example — notice the nice uptrend and the pullback (pink line) towards support?
A break above the pink line triggers a long side trade. This is just one of over a dozen set-ups on our watch list.
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