Thursday, July 9, 2009

Not Much of Interest in My Scans

I have to be honest - sometimes I go through my scans and see nothing but garbage. Tonight was one of those nights. The setups from what I see are just not there right now. On the long side, all I see are wild, volatile patterns that are putting in swings of 20-30% within a week's time. Based on what I see there, this market has some work to do before I would think of going long. I want to see nice, tight, calm patterns setting up, and I just don't see them. They will need time to setup and let some of these charts heal that have been damaged recently. I also don't know what would classify as leadership right now in this market. There was no group that stood out on the long side except for possibly small-cap biotech stocks. Personally, I don't like playing these because I have nightmares of waking up one morning to my stocks being down 90% on bad trial news. That's just me however.

On the short side, I think we need either a bit more of a bounce or more sideways action much like we saw today before nicer patterns set up. There are a few out there that might work, like UA under $20 and AAPL under $132, but not much overall to work with right now. A lot of damage was done to stocks the past week, especially in the commodity sector. They could continue to bounce and if they do in a calm manner, I will start to see some bear flags pop up. I don't see too many yet however, which again leads me to think it is not yet an optimal shorting time.

I wish I could say something different, because I know this is rather boring, but I have to go with what I see. I never want to just make up stuff to sound interesting or informative. I just don't see much to do right now in terms of individual setups and I really don't want to force any just to do something. I will make sure to get a video out as the setups start popping up, but for now, this is about all I got - zorry. Good luck tomorrow and be patient right now, especially with earnings season.


ppearlman said...

so you are long cash?

Mac said...

I guess for the next couple of days - yes. I've been long cash too much this year however.

Travis said...

Doesn't "ROST" fit the can slim method? I'm not a can slim expert but it looked like a cup and handle, and it broke through a 2 yr level of support.