Markets exploded higher this week and the Qs made new rally highs. At this point, it looks as though we will see small degree 4th and 5th waves to complete the move from the July 8 low in the Qs. This should be followed by a correction of 38% to 62% of the recent move, but I suspect it will go no lower than the 36 to 36.50 zone. 37.47 is a fib ext of the Jan range in the Qs so we may not see appreciable upside from here until after a pullback.
The most likely time period for the pullback to begin is July 21 to 23 which would be 30 days from the June solstice and the June low respectively.
I will be using any pullback to initiate new and add to existing index long positions.
Some of the stocks that I am following at the moment are:
AKS, CY, FDO, DIN, CMG, BMS, XHB, NGA, DLTR, TNDM, QCOR, SWHC, VOLC, EXPE, GOOG, EPIQ, ISLE, FAST, JOYG, TLEO
(I have positions in a few of these names. Please do your own research.) I generally only consider stocks that appear to have the potential to gain at least 40% from a new trend or breakout signal. I will occasionally settle for 30% if the timing looks right.
Tomorrow I will share my recent short trade in GME.
Subscribe to:
Post Comments (Atom)
1 comment:
"The most likely time period for the pullback to begin is July 21 to 23 which would be 30 days from the June solstice and the June low respectively."
For a week or two Art Cashin has been pointing to July 17 as "when will know" conclusively. The past couple of days Art has begged off for more time & laughingly referred to the 22nd/23rd as a "major solar eclipse". http://www.cnbc.com/id/15840232?video=1185726710&play=1
Craig, even though we are not Arch Crawford types, we along with Art know that you can't speak full-blown technical to non-believers nor can we totally dismiss things like a solar eclipse when it aligns with other info (June solstice).
Regards,
dave
Post a Comment