With the markets struggling to move towards new highs there are many candidate choices. Unfortunately, none of them are worthwhile. I spent four hours trying to find a play candidate today that had a chance of success in the current market. Most stocks had a chart that looks a lot like the S&P chart. They have risen to resistance and the gains are slowing. Others have broken out to new highs and are surging. Those are not the candidates we want to play when the market is at a possible turning point. Stocks that have not rallied over the last two weeks are obvious rejects. If they cannot move higher in a bullish market we do not want them if the market is about to roll over.
I do not know what it is about Tuesday's lately. With all the short squeezes powering us higher and the intraday declines last week, it has been a real challenge to find a play on a Turnaround Tuesday. Today did not turnaround but the failure at resistance could mean we will see that on Wednesday.
I have said in the past we should not have a play every day. Just because we have a daily newsletter does not mean every day is a buying opportunity. I think some of our bad plays come from forcing a play just to have one in every newsletter. I am going to try and avoid that trap. I would rather make fewer recommendations and have better positions than a surplus of recommendations where some do not work out.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays