Relative Strength and Relative Weakness

Now is great time to flush out your watch list and highlight the stocks that are holding up relative to the market. Any stock that is moving sideways or up in the past  few days would be coined “relative strength.” At the same token, make a note of the stocks that are down more than the broader market and look to short them on a bounce.

Entering on a new short on a bounce would occur once we break the low of the high bar after that bounce occurs, such as FSLR back on 12/8.

2 Trades Doing Okay… VPHM Long & FSLR Short

It’s not often we toot our own horn, but looking back to our 12/8 watchlist where we talked about VPHM and FSLR, along with a handful of other names, a number of which, never triggered entry signals. Nonetheless, it’s important to take every setup that meets your criteria and think in terms of probabilities, not letting one or two individual trades effect you. It’s a process that develops only with time and experience.

Stocks to Watch on 12/15:


Shorts: Too late for NEW short positions, waiting for another bounce.


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