I recently posted a bunch of "good setups" I saw this past weekend. Coming into the week I thought we had a chance to compile some semblance of constructive price action. However, with a 40 or so stock watch list I watched every name either barely breakout and reverse hard, or never breakout at all. In conjunction with a lack of actionable setups working higher, I see "leader" after "leader" breaking down rather than breaking out.
Coming into the end of the week, I don't see very many opportunities to the long side that fit my style. In an environment of news driven markets with limited to no trend I think it is prudent to at least be cautious (shouldn't be anything new to most). On the other hand, does this mean that I think the SPY is going to 50 or Europe is going to self implode? I have no idea, and frankly I don't believe it is my place to provide a crystal ball prediction. I have levels defined, at which I define my risk just like everyone else.
On the other hand, it seemed reasonable to follow up on the names I had been watching and relay the message that they did not work.
Trade em well and enjoy the holidays.
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