The ACD Method

Quote from Quon:

Anyone else extremely bullish here? I'm seeing lots of failed weeklies, (up and down).
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I like the market action. We might see one or two more down days but this market is behaving well.
 
Not bullish, but very difficult to be bearish as there always seems to be a protective bid out there. If left to work as true supply/demand for equities, my humble analysis says down, the kindergarten trade says down, but I don't think is will drop more Han another weak.
 
Quote from gptrader:

Not bullish, but very difficult to be bearish as there always seems to be a protective bid out there. If left to work as true supply/demand for equities, my humble analysis says down, the kindergarten trade says down, but I don't think is will drop more Han another weak.
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There are stocks breaking out to new all time highs right now. Why not go long them and short the index? I'm not talking about one or two, but like 40 stocks. There is some solid strength out there. I agree, this market might have a little bit left to the downside but as the index trades lower there are many stocks going higher.
 
We all trade the action here...and the action in the past two weeks has told us alot about this market.

This is truly a market of haves and have nots :).

There are real pockets of strength in this market, you can call it what you want...but you can't ignore it. Healthcare, biotech, Real estate stocks, US based stocks, and the consumer staples.

There are also real pockets of weakness in this market. Energy, materials, emerging markets, and the regional banks.

Now with these opposing forces i think we will setup for some sideways action in the next couple weeks. So imo you want to buy low and sell high. Buy strength on pullbacks and short weakness into pops.

Vol has slowly been getting pulled out of this market and I think that is a trend that will continue in the next few weeks.

The other thing to watch that is key is action in bonds. We are reaching a point of decision here...at the apex. If we breakdown there we could have a squeeze in this market.
 
Quote from Maverick74:

There are stocks breaking out to new all time highs right now. Why not go long them and short the index? I'm not talking about one or two, but like 40 stocks. There is some solid strength out there. I agree, this market might have a little bit left to the downside but as the index trades lower there are many stocks going higher.
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Can't disagree, right now i am balanced between long and short ( short on RUT, long a few equities). Want to see some more evidence here. I'd like to take half the short off, not ready yet.
 
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