Monday, July 5, 2010

Stock Market Video - Market Outlook and A List of Stocks to Watch - 7/5/10

Hi, traders - hope you enjoyed the Fourth of July weekend.   In this week's video, I look at the indices in the first two videos.   Everyone seems to be calling for a bounce here and it is certainly possible because we are a little stretched, but there is a big difference between a bounce and a bottom, and I try to point that out in this video by looking back at 2008.  If we are in a new bear market (which I think is a good possibility) then new trading rules apply.  One of the biggest mistakes you can make is buying every single dip thinking the market is bottoming or "has gone down enough."   A bounce is certainly possible here but far from a certainty (if that makes sense).  I continue to believe any bounce we get will be stopped by the 9 or 20 day moving average.   We could also just consolidate a bit and move sideways.

Part three of the video focuses on the names that I would keep on my watchlist for short setups over the next few weeks.   They were all leaders in the previous move higher and if we are entering a new bear market here, they will likely be the best names to get short as we move forward.   I'm not shorting here, but if we do bounce, I will look hard at getting short.

To see the video in HD, please click "720p" and "Full Screen" on the video bar - HD will be available after processing.  


Anonymous said...

Great of your best


Mac said...

Thanks Elio.