Dow Jones and S&P500 plunged big time on Wed on huge volume. My sense is that we could be having a near term correction. We are also seeing more volatility and the erratic price action of stocks could be interpreted as topish signals by the bear camp.
Dow Jones Index
S&P500 Index
Las Vegas Sands (LVS) retested its 50day MA and was currently rejected at the level. It has a reversal hammer candlestick pattern on high volume which to me is tell-tale signs of an overhead supply area. Price action is currently below the Clouds and is a short-selling trade, in my opinion.
The financials are breaking down again. They are looking cheap but i wouldn't touch them until they display strength again. The saying "What is low does not mean it will not go lower" really does hold true!
The chart patterns are looking increasingly like the short patterns depicted in William J O'Neil's book "How to make money selling stocks short". I have got an earlier post here. Do check it out.
Its best to be in cash if you are not shorting the market. We will have to wait for proper bases to form before going long again. Patience is the key.
Dow Jones Index
S&P500 Index
Las Vegas Sands (LVS) retested its 50day MA and was currently rejected at the level. It has a reversal hammer candlestick pattern on high volume which to me is tell-tale signs of an overhead supply area. Price action is currently below the Clouds and is a short-selling trade, in my opinion.
The financials are breaking down again. They are looking cheap but i wouldn't touch them until they display strength again. The saying "What is low does not mean it will not go lower" really does hold true!
The chart patterns are looking increasingly like the short patterns depicted in William J O'Neil's book "How to make money selling stocks short". I have got an earlier post here. Do check it out.
Its best to be in cash if you are not shorting the market. We will have to wait for proper bases to form before going long again. Patience is the key.
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