TSBTV#81 - Caution With Laggards
Posted on: July 7, 2009
Lower highs are getting established on the daily charts of the major indexes, and that points to one thing becoming a very distinct possibility in the coming weeks: some corrective price action.
If we do end up seeing that, it won’t be anything to fear. After all, the market hasn’t corrected since the huge run from the March lows, and a pullback would actually be a good thing to help some new leaders ultimately emerge.
Besides, as traders, there will be ongoing opportunities to trade on both the bullish and bearish side.
But for the purpose of this video, I want to discuss the short term. We just broke the June lows today, and those of you who are looking for short selling candidates need to keep one thing in mind.
So here in Episode 81, I’ll explain what that one thing is, and point out a few patterns which illustrate what I’m talking about. Hope you find it helpful!
(Be sure to click the full-screen option for best viewing.)
Hope you enjoy the show! Thanks for watching and subscribing, and feel free to post your ideas and comments down below.
Trade like a Bandit!
Jeff White
Follow me on Twitter
www.TheStockBandit.com (Premium service)
www.TheStockBandit.net (Trading Blog)
July 7th, 2009 at 6:10 pm
Yes, Jeff! And in fact SP500 have a head & shoulders pattern. Also it closed below 50-day moving average first tim since March.
I short LNET at 3.37.