Have been tracking the names on your Focus and Watch List since that is the style I am most comfortable with and really want to excel at that type of trading. Was watching ZS on Friday, looked like a great setup, saw it break through $70 and was considering taking a cheater entry, also considered buying on the pullback and reversal on the 15 min chart, but passed on both because I was not sure if I should be taking new positions in this market since it is in a down trend for the last five days and because it is such a news driven and volatile market. Wanted to find out your thoughts on taking new positions during this pullback?

A:

As indicated in the report above, the uncertainty related to the China trade talks lifted on Friday, sparking an afternoon sell-the-rumor, buy-the-news reversal and rally. The ability of the glamours to hold up during the five-day pullback was telling.

My private blog post sent during the Friday afternoon rally was an indication that the coast was clear for fresh-money buys. However, we will need to see some follow-through in the Nasdaq on Monday to become more comfortable. This in light of a substantial sell-off in the futures market Sunday evening. ZS is buyable, as it rests 0.8% above its 72.94 pivot.