Home Stocks Trading Advantage Stocks – Reversals

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Yesterday was a prime example of buying at highs being a bad idea. Hasn’t happened too often this year but what a reversal from the highs. Tech led the way lower ad the momentum names really got hit hard with sell volume. Retail, consumer discretionary and financials helped offset the losses. We’ve clearly seen a strong rotation to these sectors since last Friday. Somehow the DJI finished in the green while the SPX and COMP finished in the red. Let’s not forget how much we were up in the markets and how we literally closed at or near the lows of the day. It’s not a signal to bail on your longs or to take risk off, but lately the signs are starting to show. The cracks in the uptrend are now more visible and it could be tech to lead us lower. If tech rallies back then there is no fear to the downside. However, if we continue to see risk off trading coupled with aggressive short selling in the names then watch out below. I expect Turnaround Tuesday to make an appearance today. Buyers should be able to rally us back a bit. Let’s hope the bears don’t fade this rally. Open Position: VFC AMZN NKE TRIP RL RH WMT AET NTES Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC  JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM

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