A few thoughts from @RossHaber_ as part of this weekend's TraderLion Report sent out to members:
"The major indexes all declined last week. On a bright note, volume declined from the week before.
1/9
"The major indexes all declined last week. On a bright note, volume declined from the week before.
1/9
The NASDAQ and S&P 500 both added a distribution day last week. This brings the count to two days on each major index, which is far from concerning.
2/9
2/9
In terms of the Market Cycle, Friday was day -5 below the Bolded Pivot.
Remember, a reversal often occurs on days 4 and 5 of a cycle, whether you are above or below the BP. We could still see a day 6 reclaim, which sometimes happens.
3/9
Remember, a reversal often occurs on days 4 and 5 of a cycle, whether you are above or below the BP. We could still see a day 6 reclaim, which sometimes happens.
3/9
Most importantly, the current state of the market’s leadership (the Long Watch list at the bottom of the TL Weekly Report), remains healthy and broad.
4/9
4/9
We say this based on the fact that our Long Watch List exhibited some serious alpha last week.
Despite a very weak general market, our Long Watch List stayed notably strong. This is telling us something.
5/9
Despite a very weak general market, our Long Watch List stayed notably strong. This is telling us something.
5/9
Nevertheless, it’s important to remember that just because leadership continues to improve, that doesn’t mean the market still isn’t volatile and difficult to make progress in. That is also telling us something.
6/9
6/9
The bottom line is, as long as we remain below the BP, no new positions should be initiated on the long side.
7/9
7/9
As far as any long positions that you may already have established in your portfolio, each should be handled on a case-by-case basis, depending on the cost of your position, how much progress you’ve made, etc.
8/9
8/9
Otherwise, continue to watch the leaders closely, keep close track of the market’s rotation in and out of these stocks, and maintain an updated watch list. There is no better way to keep your finger on the pulse and health and breadth of the market until we reclaim the BP."
9/9
9/9
If you're interested to find out more about the TraderLion Report, click here:
traderlion.com
Good luck this week! 🦁
traderlion.com
Good luck this week! 🦁
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