Turning to the channel on the SPY, prices didn't quite make it down to the 75% line, but it does appear the intermediate term decline I've been waiting on is likely underway (despite the session being flat!)...
With a little help from some geopolitical chatter, USO held strong today. Oil still looks like a great short opportunity here with an excellent risk/reward ratio. (Disclaimer: I own puts & SCO)...
Here's another idea I'm contemplating. As I become increasingly more defensive with every uptick, I've added a few for-profit education stocks to my watchlist for potential long entries. Some of these stocks have been beaten down and now appear to be finding bottoms with solid volume coming in. Others, like EDU, are in uptrends and look like good dip buying candidates at trendline support. Here are the three on my radar...
EDU - Trendline Support
APOL - Rounded Bottom
COCO is in a nasty downtrend, but strong upside volume is coming in and this would be the spot to get long based on my dip buying strategy. Prices were able to pop back above the 5dma (blue highlighted circle) and I could easily manage my risk here on the test (green highlighted circle)...
I know if I'm going to take a shot on any of the above education stocks, I'd want to do it on strength throughout the sector, not on weakness. Speaking of weakness, I'd like to see a little in NVDA and have added it to my list of retest candidates from last night's post...
Click Any Chart To EnlargeIn summary, I'm still expecting the pullback as described in last night's post. Until proven otherwise, I'll continue to position the portfolio for the expected dip. When it finally arrives (and it will!), I plan to use that opportunity to get long a few of the names we've highlighted over the last several posts and ring the register profitably on the inverse ETFs. If this plan is proven wrong, I'll listen to the market and, as always, be ready to react accordingly!
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