Friday could be one of those landmark days that mark the end of this recent rally, and it’s sad that it took the protests in Egypt to be the catalyst for a sell-off. If we follow through and all three of the major indexes fall below the middle keltner channel, it will be a major bearish sign, especially given the size of the candlestick on the daily Nasdaq chart. Unless you were quick enough to get short intraday on Friday, I think it’s prudent to wait for continued weakness to initial short positions.
If you want to go long here be very selective about your stock picking and only buy the strongest charts. A few that showed up on my scans that look the best and have been big earnings winner this week are COHR, TNAV, and HP.
Market video at the end of this post.
When you look at an extended view of the Nasdaq, Friday’s sell-off doesn’t appear to be that bad. We’re still above the 50ema and well above the 200ema, where long term investors traditionally bail. (more)
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