I can't say today was unexpected as I have even warned in the past few updates of a market reversal looming. That said, even while taking profits and tightening my stops, I still lost more then I wanted. And, I guess the energy rally I thought might happen fell apart. Maybe I'm early, but every energy stock I highlighted last night tanked today. Not sure how tomorrow will play out as sometimes there is an immediate bounce, but I will be suspect of a strong open. There will be risk of a late day reversal if the market opens strong. I will start tonight with a 1 year NASDAQ chart.
I don't know that we will retrace a full 38.2% here, but we will have a healthy retrace at some point. One thing that scares me, is everyone is expecting a Santa Clause rally, including me, but when the market has a funny way of doing the opposite of what everyone expects.
I actually bought IIJI today on the higher high. They held above the trendline so I'm optimistic. This stock has had it's share of drama with the whole IPO deal, but it looks like the worst may be over. If it makes a new 52 week high, I think it could get explosive.
Also went long LMIA today. Strong move in the face of a weak market.
I thought HAUP may of retraced 38.2% but they ended up near a 50% retrace. I took a small position and will keep an eye on it.
I have a few more on my watch list including HOM, CMT, SVA, NBIX, KOMG, QCOM and MRVL. Good Luck tomorrow,
DT
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