As a new week approaches, we’re seeing a lot of bearish structure, trend, and momentum.
Earnings last week from companies like AMZN, FB, and GOOGL affected the major indexes and overall market. These big technology names failed to keep the market out of bearish territory. Until the structure in the indexes change and move bullish, like trading back above the daily and weekly moving averages, our thought is that the path of least resistance is to the downside.
Any bounces to come will simply be short opportunities.
Areas that we would not look to short are spots like energy, XLE, and XLP. Structurally these names are bullish according to our checklist criteria like positively stacked EMAs and green 10x bars.
Stick to the checklist. Look for bullish exposure in a potentially bearish market.
In today’s video, we’ll lay out names that are showing bullish strength and structure to position ourselves properly in this wild market.
Stay Focused!