Nasdaq has seen some of worst damage in leading stocks, based on TAPE action it is nowhere close to reversing this trend.
Nasdaq has seeing 5 consecutive day of below 50 DMA moves, 3 days of below 50 DMA close.
Many leading stocks are trading below 50 DMA which includes the following GOOG FB PCLN NFLX EXPE LNKD MA BIDU QIHU DATA WUBA YELP JKS SPWR....
Some leading stocks are barely above 50 DMA which includes CMG TSLA BAC KORS.....
Below 200 DMA includes AMZN NTES CSOD
All indices are seeing negative money flow.
Many are pinning hope for a reversal on Friday when Jobs report is expected to show 200K growth, but by Friday we may have gone further lower in indices.
The question is how to deal with this downward trend which may remain in place for a while yet.
First & foremost is to recognize that this is NOT the old bull, it is a very tired bull & is showing serious weakness.
SO..the old buy & hold strategy will be damaging to your financial health.
This market needs "laser focus trading strategy"
Know your trading stocks well & use "technical trading approach"
We are talking singles from hereon until TAPE changes to a healthy TAPE.
A 5% gain is highly desirable otherwise you risk of losing it & going into loss.
Intraday or day trading is ideal......
This is not the time to be sloppy & practice wishful strategy as it IS a very difficult TAPE.
Good luck with your own trading strategy.
BLOG does NOT give buy or sell.
Saleem
4 comments:
Hey Saleem,
Based on the difference in yours and my writeups, I might be unfortunately zigging when the market is zagging again this week. I am foolishly optimistic for an oversold bounce supported by quarter-beginning flows?
I forgot this in my writeup, but the ECB meets Thursday and some are expecting stimulative moves, which could be market supportive if they actually do something.
Stocktrader
Hi Stocktrader,
Meltdown have been severe but it has more downside in my view.
ECB may be no news BUT Jobs report could be the first catalyst....
Not expecting any bullish scenario until Friday.......
New Q may be starting on non equity focus like money market till dust settles.
Saleem
Hey Saleem,
Bought a very small speculative position in BLDP @ 4.3096 (that 1.5% cash I had).
Stocktrader
Hi Stocktrader,
That sector is very interesting with wild swing...
Good luck with Ballard..it was a Canadian company & was a high flier until it went down ....
Saleem
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