This week saw my longer term trading signal roll over and signal that it is not safe to be holding momentum stocks at this time. It doesn’t take a genius to see that the trend on all┬átime frames┬áremain down, but it does take a lot of restraint to keep oneself from gobbling up what looks like cheap stocks. Because if my hunch is correct they’re going to get a lot cheaper. Yes we are oversold, but until we see a high volume flush out day we’re just going to grind lower. Watch for a day where the Nasdaq eclipses 2.5 billion shares and then start nibbling on some overbought plays. I mentioned a few that I like in this post.

Financials look sick and like they want to retest the 09′ lows.

Just when the homebuilders looked like they wanted to buck the markets, they falter at support.

Dollar looks like it wants to test the 11′ highs. That’s my next target.

VIXY looks like it wants to test the highs – not good for general markets.

Remember when this was at $120 and Karen said it was going to $50. I do because I wanted to buy calls on it then and she advised against that trade. That was a freebie – imagine what’s inside her Astrology Traders Premium Service. And if you are on the fence at all, now is a good time because a price increase is coming next month.

5 Responses to “Thanksgiving Week Recap”

  1. Chris Says:

    I tend to agree. Tis the season to be gloomy.

    NB In the first para, I think you meant we are oversold rather than overbought.

  2. fk Says:

    Oversold but still grinding down. A lot of people buying on the oversold condition but it looks like that is not stopping from going lower. A market flush maybe the cure. Did notice though today $TLT was down.

  3. jeff pierce Says:

    thanks Chris. that’s what happens when I’m multi-tasking between blogging and building shelves….lol

  4. abdul Says:

    The down move is still strong so the best way is wait patiently and stay cool unless you still got some guts to short the market which for me is too late now unless you shorten your timeframe depending on your setup which I assumed that you already tested it for minimum 3 months and have plenty of spare cash to burn without feeling devastated at all and after that still can have a good night sleep smiling like nothing had happen. Cheers.

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