as for finding short candidates under these conditions, i am scanning for stocks that didn't participate in today's bounce. the dow closed the day up over 50 points - which stocks closed in the red or relatively unchanged? LEH did, and i am sure there are others. relative weakness may be the key, at least for now.
yesterday's huge drop has pushed many of the stocks on my watch list very close to critical 50- and 200-day moving averages as well as critical support and uptrend lines. in my opinion, today's action doesn't say much about where may be going so its still a wait-and-see situation out there...
on days like this (big drops and potential dead cat bouncing) i like to follow the action with the added insight provided by fibonacci retracement lines
1 comment:
Would you consider doing a read out on BOOM? I've been long for a long time, recently sold out, looking to play again. Thoughts? Thank you, Jim
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