I have seen a few stocks gap down and decline on heavy volume but they are few and came on earnings disappointments like NFLX. So I am beginning to get more confident that we are going to get some sort of rally during this earnings season possibly into late August/early November. I doubt it will be as smooth as the one we had from February to April but I do believe that we will get one.
Consequently, I have positioned my account inline with this hypothesis. I am currently still long of DTG and ROVI but I sold out of SPRT. I really did not have a good reason to sell SPRT so I guess this was a poor trade. It came close to my stop but did not trigger it. So I should not have sold. I just got impatient with the slow movement of the stock. This is not good enough. I am still working on this aspect of my trading i.e. not exiting trades prematurely.
Beyond this, I am confortable with my long positions and will continue to remain long the markets until I am stopped out of my positions. I do not see any attractive long setups now as the markets are very over bought. Breakout trades can still be taken but this is not my preferred style of entry.
So that is where I stand. Good luck and good trading!
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