Last night’s Focus List was titled “IWM At A New Closing Low” because it is/was extremely important. Well now you can add the SPY and the DIA to that list. The DIA did not break the intra-day low level of 105.72, but don’t let that distract you from the new closing low.
With 3 of the 4 having closed at a new low our trading strategy should be as it was last night – sell OR reversals and OR Breakdowns. No need to complicate things.
The Focus List is extremely short because there are not many (really any) stocks that have demonstrated to be worth trading from the long side without the market first demonstrating it may have bottomed. I’d rather miss the first day of a rally than get hurt trying to catch a falling market.
On the short side many of the best candidates look oversold so I’ll focus on the indexes.
Focus Long
IBM
KMB
RAI
Focus Shorts
CAT
GS
BDX
JOYG
WLT
WAG
ACN
CHRW
