Now it is much more important to build a watch / trading list than it is to run in and get cut up trying to guess which way we will trend from here.
The Dow (^DJI) bounced right at our third support level and now may be putting in a bigger head-and-shoulders pattern, which means we must be patient and see how this area plays out. During this time it is much more important to build a watch / trading list than it is to run in and get cut up trying to guess which way we will trend from here.
During earnings season I like to build a list around names that have already reported and may present post-earnings trading opportunities. For example, Goldman Sachs (GS) was red after what was perceived to be a positive earnings report and would trigger a short trade for me on a move below $114. On the other hand, Alcoa (AA), which showed a strong earnings report and had a positive reaction, would be an interesting long to me over last week’s high of $10.24.
Today I’ll be watching IBM (IBM), which was heavy before yesterday and is trading pre-market back to a key 202 level, which, if broken, may provide a short trade as well.
This and more in this morning’s video found below.
No positions in stocks mentioned.
The information on this website solely refle=
cts the analysis of or opinion about the performance of securities and fina=
ncial markets by the writers whose articles appear on the site. The views e=
xpressed by the writers are not necessarily the views of Minyanville Media,=
Inc. or members of its management. Nothing contained on the website is int=
ended to constitute a recommendation or advice addressed to an individual i=
nvestor or category of investors to purchase, sell or hold any security, or=
to take any action with respect to the prospective movement of the securit=
ies markets or to solicit the purchase or sale of any security. Any investm=
ent decisions must be made by the reader either individually or in consulta=
tion with his or her investment professional. Minyanville writers and staff=
may trade or hold positions in securities that are discussed in articles a=
ppearing on the website. Writers of articles are required to disclose wheth=
er they have a position in any stock or fund discussed in an article, but a=
re not permitted to disclose the size or direction of the position. Nothing=
on this website is intended to solicit business of any kind for a writer=
39;s business or fund. Minyanville management and staff as well as contribu=
ting writers will not respond to emails or other communications requesting =
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<=