OH BOY! We got an O’Neil Follow Through Day! That’s just great isn’t it?
We should start buying stocks now? You mean seriously AFTER the S&P 500 has just ran from 1040 to a high of 1115 (75 points) with the technical indicators screaming overbought?
Remember when we started buying? In the face of fear, 5 waves down and a double bottom when everyone was scared.
This is what we mean when we say to buy at ALTERNATIVE ENTRY POINTS. As we’ve said in the past, welcome to the world of opposites.
Short term consider yourself late to the party all into options expiration mind you.
Bottom line, we do not chase buses, instead we allow stocks to come to us via our favorite pattern and the only pattern you will ever need to know commonly known around here as a Pullback Off Highs or POH for short. A lot of issues have done initial launches higher and the name of the game going forward are to BUY THE DIPS via specific patterns we’ve been highlighting recently.
We’ll keep it short today as the mid week newsletter is due out tonight and we don’t want to throw the kitchen sink at you during the mid day otherwise we’d have nothing to say tonight. Our watch list charts are also scaled down in this update and we’ll have them for you tonight, besides a lot of names are extended and we are not one to buy extended stocks.
Below are the short term index charts of the S&P 500 and the OTC Comp.
With each of these we are at resistance levels vs support levels. However IF IF IF this is the real deal — our summer rally — then all pullbacks ought to be contained to the pink lines in the charts above. We’ll want to see what action develops at those levels should they get tested in the coming week.To learn more, visit our blog site and sign up for our free newsletter and receive our free report — “How To Outperform 90% Of Wall Street With Just $500 A Week.”
Disclosure: No positions