• dead cat bounce

The Chart of the Day…

dead cat bounce


Even in the most bearish of markets, bounces always occur. You have to be weary of them, and make sure, to a fault, that you aren’t increasing your bearishness into the bounce. 

Trades Made Today:

1. Sold SHLD at $62.17 from $56.15 for a 10.7% gain.

2. Sold LMCA at $110.99 from $107.00 for a 3.7%

3. Sold HAL at $34.39 from $34.17 for a 0.6% gain. 

4. Shorted BLL at $42.32. 

5. Bought MCD at $94.00. 

Quick Glance at the Market Heat Map and Industries

heat-map of the S&P 500

Notables:

  • We haven’t seen a heat map looks this good in a long time. 
  • Basic Materials gets a perfect 10 – not a single down stock. 
  • Technology, led by AAPL, look extremely good. 

SharePlanner Compass:

Stock-Market-Compass-Almost-Downtrend

Today’s rally didn’t change the market dynamics at all, and should still be considered a dead cat bounce. With that said, at some point this bounce should tether off, and increased selling re-emerge. 

And of course…the RIDICULOUS!

I have no idea which party this guy represents, but he is running for governor of Washington, and he needs to be voted in. I’ll have an endless supply of ridiculous videos. The good stuff really gets going at 0:35 and even better at 0:59. 

If you are a politician, the first rule of thumb, is to never, ever, ever fast dance to anything. You will look like a moron. 

You Might Like

  • swing trading strategies in market corrections

    Trading Market Corrections with Swing Trading Strategies

  • Short-term bounce

    The Anatomy of a Short-Term Bounce

  • January Barometer: As January goes, so goes the year.

    January Barometer: As January Goes