Morning folks. Futures gapping down today over 1% across the board. This is going to be typical for the markets over the next period of trading as we are very sensitive to the news cycle right now. We just had 3 stragiht days of run in the market popping into a key resistance zone yesterday. As of right now we have had a nice really the last few days. They key will be what happens today. It will be very telling if this dip gets bought today. Lot of traders missed out on this rally as the fear in the markets was intense. Lets see if we can get some participation from them before we deem this rally to be over. We are shorterm overbought and had a nice run so imo a dip is somwhat healthy and good for traders I personally never like adding too many plays after market ran hard for 3 days.
we’ll keep some shorts on the books just incase we need them. these are bear flags you can take them with stops right above the m.a. for most part. the essential of a bear flag is to find stocks that have tanked hard then had a low volume or relief bounce (known as deadcat bounce). Often thse stocks tend to fade right back to the recent low
i also like on the bottom bounce scan
kfn, ttwo, hst, cort, sho, entr ista, gtiv prmw all have similiar setups.
trade tight today. today will be telling after oversold bounce we need to make higher lows and see some buyers come in at some point.