Trading styles need adjustment…

Tarzan

Tarzan

Trading styles need to adjusted in this environment. I have noticed strong stocks that gap on on news/ earnings/ upgrades are now selling off on strength. Even buying a retracement has proven, in many cases, a bad idea. I am now getting in and not wearing out my welcome by staying in a stock too long. This is somewhat a change in the market, the past 2 years have seen many stocks that have good news close at or near their highs regardless of what the naz or dow does. The past few weeks, that has changed. What that means, I dont know yet. It may signal a change in the direction of the market and the easy money having been made already.
Even strong stock upgrades by Goldman Sachs have been selling off and these are stocks that arent extended and were good set ups. The upgrades were also compelling with strong supporting research notes.
Look at TXT on friday with a goldman upgrade. That chart looked good.
 
Tarzan said:
Trading styles need to adjusted in this environment. I have noticed strong stocks that gap on on news/ earnings/ upgrades are now selling off on strength. Even buying a retracement has proven, in many cases, a bad idea. I am now getting in and not wearing out my welcome by staying in a stock too long. This is somewhat a change in the market, the past 2 years have seen many stocks that have good news close at or near their highs regardless of what the naz or dow does. The past few weeks, that has changed. What that means, I dont know yet. It may signal a change in the direction of the market and the easy money having been made already.
Even strong stock upgrades by Goldman Sachs have been selling off and these are stocks that arent extended and were good set ups. The upgrades were also compelling with strong supporting research notes.
Look at TXT on friday with a goldman upgrade. That chart looked good.
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It will be interesting to see if AMZN can hold its break out on the weekly chart.

AMZNWeekly.JPG
 
Tarzan said:
Trading styles need to adjusted in this environment. I have noticed strong stocks that gap on on news/ earnings/ upgrades are now selling off on strength. Even buying a retracement has proven, in many cases, a bad idea. I am now getting in and not wearing out my welcome by staying in a stock too long. This is somewhat a change in the market, the past 2 years have seen many stocks that have good news close at or near their highs regardless of what the naz or dow does. The past few weeks, that has changed. What that means, I dont know yet. It may signal a change in the direction of the market and the easy money having been made already.
Even strong stock upgrades by Goldman Sachs have been selling off and these are stocks that arent extended and were good set ups. The upgrades were also compelling with strong supporting research notes.
Look at TXT on friday with a goldman upgrade. That chart looked good.
More...
Did the same thing June 29th. Gap/crap.

And April 20th and March 31st and Nov 19th of last year and ... and ...

But things have changed. Other than possible infrastructure stimmy coming, all the Fed bullets have been shot. Which means earnings have to continue to outperform beyond just great. Many are coming to the realization not all the MegaCaps (market leaders) will be able to so.

So either we are in beginning of a long overdue real correction/stock pickers market or, a strong possibility market goes much higher for only a few Mega's dragging indices with them even if majority of other stocks lag or outright tank. Third and a least likely although never say never scenario is a bear market is here.
 
Tarzan said:
Trading styles need to adjusted in this environment. I have noticed strong stocks that gap on on news/ earnings/ upgrades are now selling off on strength. Even buying a retracement has proven, in many cases, a bad idea. I am now getting in and not wearing out my welcome by staying in a stock too long. This is somewhat a change in the market, the past 2 years have seen many stocks that have good news close at or near their highs regardless of what the naz or dow does. The past few weeks, that has changed. What that means, I dont know yet. It may signal a change in the direction of the market and the easy money having been made already.
Even strong stock upgrades by Goldman Sachs have been selling off and these are stocks that arent extended and were good set ups. The upgrades were also compelling with strong supporting research notes.
Look at TXT on friday with a goldman upgrade. That chart looked good.
More...
%%
Summer rally tends to be weakest of the quarters;
maybe the market woke up to that......... Or could be the common buy monday\down monday pattern.
Inverse ETFs had a good move today\monday, good change/adjustment.
 
Tarzan said:
Trading styles need to adjusted in this environment. I have noticed strong stocks that gap on on news/ earnings/ upgrades are now selling off on strength. Even buying a retracement has proven, in many cases, a bad idea. I am now getting in and not wearing out my welcome by staying in a stock too long. This is somewhat a change in the market, the past 2 years have seen many stocks that have good news close at or near their highs regardless of what the naz or dow does. The past few weeks, that has changed. What that means, I dont know yet. It may signal a change in the direction of the market and the easy money having been made already.
Even strong stock upgrades by Goldman Sachs have been selling off and these are stocks that arent extended and were good set ups. The upgrades were also compelling with strong supporting research notes.
Look at TXT on friday with a goldman upgrade. That chart looked good.
More...
What timeframe charts have been your bread and butter over the last 2 years? Still the same?
 
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