Today is a good example of a session that is tough on our daytrading methodology. The market had been strong throughout the day, only to tail off late in the day, erasing most of a triple digit gain in the Dow, and the NASDAQ turned negative by the end of the day. As a result, a lot of stocks started up, then fell back on the day. Many of the recent high flyers also pulled back. Volume has been shrinking as of late, and volatility is quite low. These are a couple signs that the market may be due for a pullback.
Yesterday's best pick, BG, had a little follow through early in the session, only to join the rest of the crowd and close lower on the day.
Two of our Monday picks did not offer trades, while the other ended in a small loss on the day.
Tuesday does not offer any reasonable candidates according to our system. Could be a day to keep an eye on a few of the ProShares Ultra Short ETF's for candidates to the long side. QID and TWM are the two I follow most often when considering on a bet against the market.
Good Trading!
Scott Cole
www.kungfutrader.com
www.bestdaytradingstocks.com
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