The market decline may be a one-day event or the start of something bigger. The decline was lackluster and the indexes dipped slightly below last week's resistance highs. However, that is not the biggest problem. I scanned charts for more than 350 small cap stocks looking for a potential candidate today and we already have the best charts in our portfolio. Other stocks with decent charts have earnings this week or next. I could not find anything that did not have earnings in the immediate future that I would buy with my money. That is one of the criteria I use when choosing plays.
Of those 350 small cap stocks under $25 the vast majority had negative charts. Quite a few had hit recent highs over the last seven days but had been declining for several days since. Quite a few were at two-week lows or worse. This suggests the market rally is losing traction and the next material move could be lower. It will be tough to add new plays until after this week is over. This is the busiest earnings week of the cycle and Thursday is the busiest day. Next week we will have a lot more candidates with earnings behind them.
NEW BULLISH Plays
No New Bullish Plays
NEW BEARISH Plays
No New Bearish Plays