Classic dead cat bounce up to this point

We’re getting a bounce out of this market today, and while I’d like to think it is more than a dead-cat bounce, at this point, it doesn’t look like that. Dead cat bounces can and usually lasts a few days, so don’t take today’s strength and just start shorting away, because it doesn’t usually reverse again the following day.

Often times the dip buyers will keep pushing the market higher, and then when that runs out then the next wave of selling comes in.  So take this rally today as a grain of salt. At this point, I am viewing the rally as an opportunity of where I can get out of existing long positions. Unless the profile of this rally changes, the only thing that is prudent is to view this market as a simple bounce and likely one that will be shorted again. 

But just in case this market is more than a dead cat…

I’ve included my long set  up swing-trades for the week ahead. A number of those that were on the list last week have been taken off simply due to how they reacted with the markets weakness from this week. The top ones from the list that I am watching are those that have performed under pressure this week they are: 

DaVita HealthCare Partners (DVA) – Pulled back nicely after earnings and market weakness to a key support level at the previous breakout level. It offers a low risk setup and the opportunity to ride it up into the $120’s for a nice profit. 

Whiting Petroleum Corp (WLL) – Similar to DVA and you also have a inverse head and shoulders pattern that has confirmed and pulled back to the neckline.