DTT Buzz

As we all know, the market has been extremely volatile for several months. The overall directional bias was to the downside, but violent swings to the tune of 10 - 15% occurred randomly throughout the downward trek. This makes it very hard to swing trade stocks, unless you are willing to enter the position with an extremely wide stop, or no stop at all!


I recently noted some stability in the major indices, as well as several individual stocks. I pointed out a good set up in AAPL a few weeks ago...that's a good example of what I'm talking about here.

The overall stability took place after large technical measured moves were completed. We had been calling for these moves in our Live Trading Room, and they nearly all came to fruition. Volatility has remained since the stability, but I have seen quite a bit of buy side confidence. This leads me to believe we may have bottomed out, and may see some nice gradual upside in the market. By "gradual", I mean a few solid days followed by a couple days of selling...gradually leading to overall upside traction.


With everything said, I am nowhere near comfortable going "all in" in this market just yet. There are still several uncertainties looming, and it only takes one piece of bad news to unravel this overly data sensitive market environment. I'm simply noting some moderate strength, which has led me to start building some small positions.

I'd love to head any opinions on the short term future of the market. Please do not hesitate to leave your thoughts in the comments section below!


Regards,


Nick Fenton