Time and time again we've said:
"We do not chase buses around here as we've seen it time and time again where one jumps in thinking the short term trend is going to continue and then? WHAM 10-15 days worth of gains wiped out in 2 days. Those who like chasing stocks AFTER the fact? Good luck with that."
This week's action in leading stocks should come as no surprise as we have been noting how extended and sloppy they were getting. This is why we pay attention to the leaders. This is how the market talks to us. More often than not we can't tell you how many times in the past where we have seen the leaders roll over and soon after the rest of the market isn't far behind.
After all lead means BOTH directions. When we started buying them back in the end of August nobody wanted anything to do with most of them. A week ago or even Tuesday? Everyone had to have them and true to form the market obliged by letting those who had to have it, have it BUT not they way they wanted to mind you.
Make no mistake, the damage that has been done to some of these names will not be repaired overnight. CREE
WAS a market leader and it's been months and it still isn't showing any sign of stabilizing from when it went into its correction.
Following are some leading stocks that were damaged significantly this week followed by leading stocks who may give us another opportunity to buy them at low-risk entry points in the near future.
LEADING STOCKS TO FORGET
One could say this issue had a head and shoulders top to it if you look close.VMW
With all of the above, notice the double tops all over the place? Those double tops are your early warning alert system pattern telling you a potential change in trend is near, in this case up to down.
LEADING STOCKS TO CONSIDER BUYING
These are the leaders we want to watch over the next few days. We buy stocks at support and should these stocks continue to pullback to support in an orderly manner, we'll want to be buyers at those levels.
When each of these stocks trigger a trade, we'll issue you a trade trigger email alert so you can buy them at the opportune time -- when they are finding support and offering you a low-risk alternative entry point! Find out more at the end of this newsletter.
Talk to us at the blue line, it gets us interested on the long side for a trade.
At or near the green line gets us interested in the long side for a trade.
The green line gets us interested on the long side for a potential trade.
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