Judging by the looks of the Russel 2000 and the candlestick pattern it formed today after a three day sell off, it seems as though a rebound at least to the downward sloping trend line may be imminent.
From my watch list, I have identified two potential stocks that can be used to leverage any bounce that may materialize. These two stocks are ARMH and PWER. ARMH I intend to swing trade but PWER I may day trade but more likely not touch at all! The reason for this is that both stocks will be reporting earnings soon. PWER this week and ARMH next week. So where as ARMH offers some what of a time window to safely execute a swing trade, PWER does not.
Needless to say, I have been burnt by a string of losing trades this month which have drawn my account down by about $500.00. However, this does not mean that I am going to stop trading or hang my head in despair. I will continue to take "high probability" signals as draw downs are a natural, normal part of any money making stock trading strategy. The only thing that has me a bit queasy right now is the smattering of earnings releases to be unleashed upon the markets that will undoubtedly cause volatility to remain at high levels.
None the less, I will stick to my guns and right now they say LONG!!!
Good luck and good trading.
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