{+++} Interesting what a two or three day correction will do to your longs. We sold some things last Wednesday before things got dicey and we were stopped on some names (at nice profits) and got stopped for some losses. Overall though, not a bad month so far.
Things stabilized today and many of the momentum names like VIPS, FUEL and NFLX had big days. Unfortunately, as does happen sometimes, TSLA dove lower, hit our stop, then moved up almost nine bucks today. Hate when that happens, but it happens. There is no lack of an appetite for the momentum stocks.
We are down to just a handful of names on our list which is down dramatically from where we were just a week ago. I’m not sure if the sellers have backed off, they did today, but we all need to watch the 1772- 1775 SPX level for support. I’m pretty bullish, and this rally could go another day or two before we go sideways or lower, we’ll just have to stay nimble. If the bears really want to make a statement they could knock the SPX down to that big round number of 1700. That is also the 200 day moving average area. Frankly I’d like to see one more big flush. If so, I think it would set the stage for a strong balance of the year as we will have gotten the “big correction” out of the way.
I’m trying to find some oversold names for us and I may get out some emails tomorrow. Let’s see how the day goes.
Have a great night.