Unlike previous times when the market sold off we did not see a V-bottom nor did we see an uptick in stocks rebounding hard after the sell-off this time around. As you can see in the chart below, anytime we had a spike in 1-month new lows we typically had a day with a lot of stocks going up 4% or more immediately after, that was not the case this time around. Overall, breadth has been slow to rebound, unlike previous times.
The indices are below their 20-day moving averages and set-ups are scarce, act accordingly.
$DVAX $GRUB $NEWA $PLUG are the stocks of interest on the long side for me today if and only if they can get through yesterday's high.
STOCK OF THE WEEK RECAP
Frank Zorrilla, Registered Advisor In New York. If you need a second opinion, suggestions, and or feedback in regards to the market feel free to reach me at firstname.lastname@example.org or 646-480-7463.
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