Traders lately have been busy lately lamenting the fact that the action has been highly inconsistent. Not only has the action been mixed under the surface, but the leader/laggard relationships seem to be shifting on a daily basis. Monday was a perfect example, as tech continued to bounce while the majors finished flat and small-caps reversed nearly all of last Friday’s gains. The bears suggest that this is a sign that investors are getting skittish, and with a tightening monetary policy and zero progress on more growth-friendly fiscal policies, it’s easy to have doubts about the bulls’ chances in the second-half of the year.
We’ll see how the proverbial cookie crumbles, but as always, we’ll leave the prognosticating to the attention seeking pundits and concentrate on digging through the charts and finding actionable ideas for our community. What’s notable is that there are some good set-ups that have started to develop after the consolidation over the past few weeks. It’s easy to get bogged down worrying about what might happen in the market, but the simple key to consistent market success is focusing on finding high-odds set-ups and disciplined trade management.
Let’s take a look at some charts:
At the time of this post, RevShark had no position in any of the stocks mentioned.
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