I haven’t been actively trading in the market today, mainly because the market is really hard to predict with the massive sell-off yesterday whether we just bounce right back up, or we go further south from here.
In particular, today just felt like a massive short covering, so there’s not much to lead me to believe that today is more than just a dead-cat bounce. On the other hand, I’ve experienced quite a few ‘unpredictable-markets’ in my life time, and I’ve seen it that even with a heavy sell-off like we had yesterday, that the market can wipe out those losses in 2-3 days when the dip buyers step in. So I don’t want to pile on the shorts here either.
I’ve provided below 3 setups that you can take advantage of today, or when the market has better conditions to take advantage of. The choice is up to you.
LONG: Overstock.com (OSTK) – nice ascending wedge here, and a breakout above $7.05. Once that happens, it could really fly, particularly past minor resistance at $7.20 .
