This is a pretty heavy pullback that we are seeing so far this morning.
I’m not overly thrilled that the bulls have given up all of its gains from Friday and now some from Thursday too. However, the 50-day moving average is holding (for now), and I’ve decided to take on a new position to the long side.
I ended up booking 6% in my Square (SQ) trade today, so I felt pretty good about that, though ideally, I would have liked to have held it through the first market sell off of the past couple of weeks, without getting stopped out. But as traders, we don’t always have our way, we simply have to respect the wishes of the market and what it wants to give us.
Take a good look at the list of stocks below, if the market is serious about continuing the trend higher this week, and letting this only be a 1-2 day event, then you’re going to have to be ready to pounce on some of the names on this list. But don’t do it all at once. Take it slow, because there is no way to know how far this market wants to sink here, or even if the rally over the past month has been nothing more than a dead-cat bounce.
So be steady and patience and look for opportunities to pounce on some ideal trade setups from the list below: