Stocks were uncharacteristically weak heading into the long weekend, putting in two solid down days Wednesday and Thursday, leaving the indices a little oversold in the short-term and the S&P 500 under its 50dma for the first time in about 6 months or so. That pressure, however, put us in position for a decent bounce on Monday, but the multiweek descending channel off March 1 highs remains in place, and traders are watching to see if key support levels hold.
Against all of this is a slew of issues that provide this recent pullback (which, depending on who you talk to, is either a great buying opportunity or the end of the universe as we know it) with a backdrop of instability an uncertainty. The bears are convinced that any number of things, including Syria, North Korea, the Brexit, oil, the Fed, fiscal/legislative/administrative ineptitude, valuations, etc, etc, etc, had put the ball in their court, while the bulls point out that all of these things are simply providing blocks for an ever-growing Wall ‘O Worry.
Which side will prevail and claim the Iron Throne of Westeros remains to be seen. Us? We’ll just keep doing what we do, which is digging through the charts to find good opportunities for our community, such as CBLI, which several Shark Investing members were able to ride on Monday. There are decent set-ups both long and short right now, and you don’t need an opinion about which way the proverbial cookie will crumble to profit. All you need is a good list and a strong community of like-minded individual investors.
Let take a look at some charts:
At the time of this post, RevShark had no position in any of the stocks mentioned.