Wednesday, July 08, 2009

Time To Wade Back In

Today was a scary day if you were long or thinking of going long.  But days like today present buying opportunities especially considering the action of the leaders since we fell into this correction on June 11th.
 
Leaders continue to hold key support areas.  This is extremely positive considering we are down 8%+ on all the indexes at today's low. 
 
We had a scary shakeout in every leader today, while the general market managed to hold steady in heavy volume.  The pattern for this correction has been the exact opposite.  While indexes were getting hit leaders held.  Today's action is typical for shakeouts.
 
There have been, and still are, many early entry opportunities if this rally is to resume.  The best plan of action is to weed back in here.  Don't wait too long, as the risk increases as stocks move away from their pullbacks.  Reason, too much volatility around breakouts makes it very difficult to hold.
 
Everything I look at at, points to a resumption of this rally.  If I'm wrong, the risk is not high right here.
 
Good Luck

 

 

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