Short Term Top?
I mentioned a couple days ago that once the VIX hit low 20, a counter trend was sure to develop. And it did. Once the VIX dipped to 20.10, the market started to deteriorate. At one instant we were up 80 or so points. By the close, we were down to -90 points on the DJIA (a 170 point swing in price to the downside). The best strategy is to follow your individual stocks support/resistance levels. If your stocks continue to hold up, hold them. If they are breaking down and hitting stops and mental stop levels, get rid of them. The VIX may bounce up to the 25-26 level before hitting possible resistance. Once that is hit, the markets should bounce from there. On the DJIA, I can see the price hitting 9,800 if the 9,950 level doesn't hold.
posted by Nick M. @ 4:14 PM
12 Comments:
Took a position in HILL. I got stopped out of CMFO.
It will be interesting to see where we close today. I would be pleasantly surprised if we close in the green....So far, all dips in HPJ are being bought. POWR is another battery stock that has already begun a strong uptrend. One day, HPJ will do the same...
DDRX, dips being bought. XRTX still getting hit a bit as nervous traders jump ship following the disclosure that XRTX was a Galleon Fun holding. HTCH is another stock that got hit because of Galleon. I wouldn't be surprised if 1/4 of the market decline was associated with Galleon and the liquidation of their fund (they had holdings were more than 1 Billion).
I also got stopped out of CMFO. Sucks that the stock was at a profit a few days ago. The HILL buy is at a good buy point, nice! XRTX (a peer to HILL) should be a good buy if it can close above the 20 day Ma. QTM, also in the same group, looks good.
HPJ, today, is actually at the buy point I normally use for entries, between the 10 & 30 MA, which annoys the piss out of me because I stopped myself out of the position twice already in the last seven trading days. I'm still unsure about it though. If it breaks out of this consolidation, I'll try to grab it again between 3.80 and 4.15ish.
I liked HILL, it was quiet, steady moving, and oversold; you're right.
HWD holding support and still setting up today, also.
ACLS looks like it wants to pivot too! I can't grab ACLS until tomorrow, but I'm drooling over it right now.
ACLS screwed me a bit,so I'll wait for it to close above 1.25 on hi vol before I rebuy
KPPC also looking good...it is a high quality stock.
HWD, very volatile (cause of its industry), but yes it is holding on strong.
HPJ would be good to buy if it can close near its HOD, which would be above its 20 day MA. A close below that MA on heavy vol would be a good, low risk stop for it.
I know what you mean about ACLS, that's my sentiment for HPJ, lol. I took the position in ACLS and dropped HWD. ...Nothing against HWD, I'll look for another entry in it tomorrow.
HWD ended up decent by the EOD.
INHX has been acting very well lately...slowly being accumulated before a big breakout...
There goes AMZN..up A/H. That is at least one good reason for the NASDAQ to go green tomorrow...
XRTX offered a great low risk entry today...doesn't get any better than that. Assuming there isn't any totally negative news, odds are, stock should head higher from here on out.
Another good one to keep an eye out for earnings is BIDU (Oct 26)
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