We discussed several times over the past few months that the period starting mid- to late-July and through early-October has been the roughest period of the year for the market, and so far, it’s living up to that reputation. After a small bounce early last week, stocks suffered another Thursday breakdown, sending the indices down towards some of their longer-term moving averages.
After becoming quite extended towards mid-July, the market was in desperate need of some backing and filling, and that’s what we’ve been seeing… at least so far. Gobs of individual stocks have been struggling for a couple months now, but strong action in a few stocks that are heavily weighted in the indices covered that up to a great extent. The indices have been playing a little catch-up, and the jury’s still out on whether or not what we’re seeing is the start of a more prolonged correctional phase, or some near-term consolidation that will set up a strong run into the end of the year.
In response, we’ve been trading tight and digging deep as we continue to bring actionable ideas to our community of like-minded investors.
Here are a few for your consideration this morning.
At the time of this post, RevShark had no positions in any of the stocks mentioned.
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