While my post after the market close reaffirmed my bearish stance, I am finding more and more solid long setups. The health care sector is smokin’, with stocks like HRT and ROCM leading the way.
In this market environment, the only longs I’m willing to trade are stocks with high volume breakouts over major resistance levels. This is not the time for me to bottom dwell or buy support. It’s just too risky right now. Yeah, some of you can make money playing the bounces of down trending stocks, but that’s not my game.
Take a look at JOSB. Here we have the perfect example of a high volume breakout over major resistance. I have a list of about 20 stocks that have made this type of move over the past few days. I am looking for low volume pullbacks to support (prior resistance) for entry. If the stock keeps climbing, I cross it off my list (parabolic moves are too high risk for me right now).