My Long Watch-List for the Imminent Dead-Cat Bounce
Just as I’ve just provided you with My Short Watch-List, in which my primary goal will be to add new short positions off of a strong market bounce coming likely in the week ahead, I’ve also put together a small watch-list of long setups that I like so far. I’m likely to add to this list, but so far, the top candidates are Dick Sporting Goods (DKS), GameStop (GME) and $Staples (SPLS). The others may provide excellent trading opportunities but are ones that I’ll want the price action to convince me first of their merits.
Like I said in my previous post, i think this market is setting up for a bounce that will carry us through Thanksgiving week, and as a result, I’ve curbed my short exposure to just one position with Clean Energy Fuels (CLNE), and will likely close that one out at some point tomorrow.
Stay nimble out there. Don’t hang on to your short positions for too long, and don’t try to front run a bounce either. Let the market come to you and you’ll be just fine.