The market is trying to rally from deeply oversold conditions. The market rallied during the shortened holiday week but volume was anemic (which is not bullish) and the major indices are still below their respective declining 50 day moving average lines (which is not bullish). Looking forward, we are entering earnings season over the next few weeks and how the market (and each stock) REACTS to earnings will be critical. If we get a bullish reaction, that will increase the odds the market will likely rally from here and if we get a bearish reaction, and June’s lows are breached, then we will likely head lower. For now, as long as June’s lows are defended for the major indices odds favor we are moving sideways to higher and a new tradeable window has emerged. Conversely, if June’s lows are breached, then we are likely headed for another leg down.
Candy (a.k.a. Actionable Ideas)
LI Buyable at $41.70, place a protective stop 5% below your entry
ENPH Buyable Here, place a protective stop 5% below your entry
ALKS Buyable $32.33, place a protective stop 5% below your entry
BIG CAP LEADERS
Big Caps Crossed Above 50DMA
MID & SMALL CAP LEADERS
Small & Mid Caps Leaders Crossed Above 50DMA
Have a great week!
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