“If Your Head’s Spinning They’re Winning”


Rule #39 “If Your Head’s Spinning; They’re Winning” might be the most appropriate warning I can give you for this week’s trade.

After that quick sell-off on Friday afternoon that ended on the lows of the day; worse case we might be set for a fair size gap down open on Monday. If this occurs don’t be surprised if any rally attempt fails by the end of the day to leave us closing near our lows once again. Another weak start to Tuesday might be enough bait to draw in some late short plays that should prompt a snap-back rally that would most likely stick. At the low point the market could be off as much as 5% from Fridays close in many sectors with some individual stocks faring even worse only to have the market suddenly regain its footing and recover most of its losses if not all by the end of trade Wednesday.

Now all of this is based on a lot of “ifs” that I see in the charts and levels of fair support that could give way with enough downward momentum. I’ve found it always best to come up with all possible scenarios for each coming week as I plan out my trades and this one is likely enough to mention to you; so be prepared just in case it materializes. For me it’s especially important to watch the open on Monday across the board; a big down open means wait for another dip on Tuesday with most of the stocks that I plan to trade next week to the long side.

Stocks To Watch (For A Worse Case Scenario Buy)

LULU @ $72.75

PCLN @ $762

QQQ @ $71.22

GOOG @ $843

SPY @ $161.31

FSLR @ $46.80

BLK @ $258.80

LNKD has attempted to rally here several times over the last few sessions and failed; but it may have a good buy point here on a dip Monday @ $162.10 so be ready if social media is your play.

I’ll update this list and tighten up some of these prices after we see what happens on Monday.

All in all I’m ready for anything here this week. It could be a wild ride; or it could be a snoozer; just stick to your charts; lose the emotions and remember “If Your Head’s Spinning They’re Winning”.

As always – study more than you trade and you will succeed – good luck – PTP –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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