Trade Ideas

The chart work I did this weekend has led me to think we are in for pretty much more of the same, that is to say selling. The one possible exception to this, as I pointed out in the main post for today, is the homebuilders. Based upon rates being back near historical lows there is some hope that they can recover, thus some of them have rallied strongly and will offer lower risk buying opportunities on light volume selling.

Stocks that I will have orders in for today are all on the short side as of this moment, and I don't see that likely changing. I'll be watching CAT, BA, ERJ, TXT, TWX and KLAC all for short opportunities upon breaking Friday's lows: Be cautious of gaps down however as in that case I do not enter right away, but rather wait for the first pivot point to establish itself and then use that as my entry price.

As I get more comfortable using this blog I will include charts with commentary on some of the picks, which will only be found on this blog and no place else.