I generally gather my best market intel by going through hundreds of individual stock charts. So let's talk about what's been happening within those charts.
At the beginning of October, chart after chart was at a long term support area. Many were building a base or forming some short term divergences and so forth. For a couple of weeks, we saw some broad participation. That participation tailed significantly as the S&P 500 pushed into the high 2000s.
Now, the market has pulled back for over a week. Naturally, we're looking all over for long setups and ideas. I've been looking all week. It's hard to find quality price structures.
Numerous strong short term rips have been followed with immediate selling. That is a characteristic we've seen a ton in the commodity complex, but that action is not exclusive to the space. It's happening in numerous sectors.
We can't forget the damage that was done across the board throughout August and September. Many stocks are still working through a ton of supply. Mega cap leaders have rallied hard, making the market capitalization weighted indices look better than the full market of stocks we're actually working with.
On another note, it's no coincidence price action has soured after everyone's resistance levels were blown out. After all, the market fools some of the people all of the time.
Trade 'em well!
No comments:
Post a Comment