After a massive run-up going into this morning’s job number, the market was certainly set up for a selloff, and when the number came out (which was AWFUL), we certainly got a selloff…sort of. The market started the day with a gap, tried to bounce a bit, but then quickly sold off further. That was about it, however, and around 11:15, a bottom was put in for the day and the market rallied strongly from there, finishing well off of its lows. Although the final numbers will show decent sized losses, in my opinion today was a very impressive showing by the bulls. Remember as well that this was in the face of an AWFUL jobs number…

I went into the day short two stocks (SOHU and BEXP) and long only one stock. I was stopped out of both shorts by lunchtime and began to go long again in force as I saw setups I liked all over the place. This may be the wrong play as perhaps the market needs to pullback further from here, but given the action intraday, I think it was the right move.

Even in the morning selloff, there was no damage seen on any of the charts I went through. If you went solely by the charts of individual stocks, you would have been shocked that the market was down over a percent. A slower pullback with more consolidation would have been better, but based on what we saw today, this might be it. It looks like dip buyers are back in the game and those underinvested during the recent run-up are looking to get invested quickly.

My family and I are lake-bound for our week-long summer vacation, so I am putting a video out now with the stocks that I am watching closely next week. I skipped the overall market commentary as I think today proved for now that this market is one to buy, but as always, make sure you use stops and don’t hold losses in case this market turns. I will have my laptop during the vacation and although I probably won’t be posting much, I will be tweeting occasionally and maybe sharing some thoughts as I get them. Best of luck in the week ahead – it will be quite hard to top this past week. So far, I am liking the month of July much, much better than June.

Recommended Posts


Understanding Momentum Measurement with the Stochastic Oscillator

In the world of trading, the stochastic oscillator stands as a vital tool for assessing the momentum behind price movements. Momentum, essentially the rate of acceleration in price movement, forms the cornerstone of this indicator’s utility. The core idea underpinning the stochastic indicator revolves around the belief that an instrument’s price momentum often shifts before the actual direction of the instrument changes. Consequently, this indicator proves invaluable in predicting trend reversals with precision. Utilizing the Stochastic Oscillator for Traders of All Levels Whether you’re an experienced trader or someone new to the world of technical analysis, the stochastic oscillator can become a valuable asset in your trading toolkit. When coupled with other technical analysis tools like moving averages, trendlines, and support and resistance levels, the stochastic oscillator enhances trading accuracy and assists in identifying opportune entry and exit points. The Stochastic Calculation Demystified The calculation process of the stochastic indicator hinges on analyzing a price range over a specified time period or a series of price candles, with the typical settings involving a 14-period/price candle configuration. It compares the highest […]


Trading Charts with the MACD Indicator

Trading is a thrilling activity that can lead to financial independence if done correctly. As a trader, the use of charts and indicators is essential in making informed decisions. One such indicator is the Moving Average Convergence Divergence (MACD) which is a popular tool among traders. In this article, we will dive into how you can use MACD to boost your trading strategy and achieve financial success. MACD is a trend-following indicator that uses moving averages to identify changes in the trend direction. The indicator is made up of two lines, the MACD line and the signal line, both of which are derived from moving averages. The MACD line is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA, while the signal line is a 9-period EMA of the MACD line. One of the primary uses of MACD is to identify trend reversals. When the MACD line crosses above the signal line, it is a bullish signal indicating that the trend is likely to shift to an upward direction. On the other hand, when the MACD […]