Monday, August 26, 2013

A Sudden Turnaround

The market was showing some strength in the early morning trading with many stocks surging higher. Then near mid-day and early afternoon, the market started to show some sign of stalling and many stocks beginning to give back majority of their morning gains.

At the close of the trading session, many stocks printed a shooting star doji type of candle. When there are many stocks showing this type of price action, something could be happening or about to happen that is not apparent at the present. When one see this type of price action, it's probably would be wise to take a more conservative stance by tighten up the stops to protect one’s capitals and unrealized gains, and move to the sideline.

Although there is a possibility one could be overly paranoid, but for a late August week with Labor Day weekend coming up, why risk it. There will always be opportunities in the market. For time like this, it would be better to be out of the market and wishing you are in than trapped in the market on a down draft wishing you are out.

Here is a video reviewing and looking at the various price actions for the following stocks & ETF: CHK SLV GLD MGM TSLA KKD FB GMCR CELG NFLX AAPL GOOG GS BAC, along with a brief look at the market indices.


Click here to view the video if you do not see a video player on your screen.



Disclosure: Long on GLD & FB


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