The regularly-scheduled Marder Report is being brought to you via video this evening. The video is 32 minutes in length and was the best way to cover 25+ stocks in sufficient detail so that subscribers can understand the thought process between separating the wheat from the chaff. At the moment, the video is in post-production and a link to it will be furnished as soon as it is complete.
Each of us as traders has a unique makeup of temperament, risk tolerance, experience, patience, investment objective, and a number of other things. Regardless of whether you are very aggressive, aggressive, or less-aggressive, it is important to always have a list of names that are setting up technically that you can turn to if and when the averages turn and head higher.
A less-aggressive player will wait for an O'Neil follow-through day (FTD) before dipping a toe in the water via one or more test buys.
An aggressive player might begin buying before the O'Neil FTD after the market rises from its low for x days.
A very aggressive player might take one or more test buys in high relative strength stocks following the first day up in the averages. The video shows which names are viewed as the most attractive in the market should they wish to make one or more test buys over the next few days.
Normally, I fit into the aggressive camp when it comes to how soon I might wade back into the market following a low. However, there are three things that might provide me with enough evidence to take one or more test buys Monday if the market rallies:
1) The S&P 500 recorded its fastest move to a 10% correction off a peak ever.
2) Nasdaq volume Thursday and Friday were the heaviest volume days since at least 1980. This and No. 1 indicate abnormal liquidation.
3) Numerous growth stocks are showing strong relative strength line slopes, indicating this sector is poised to lead the market if it was to bottom anytime soon.
The combination of 1 and 2 above are believed to represent a selling climax with the potential for a short-term low. With that said, any Nasdaq rally from here should be viewed as a short-term move and not necessarily an intermediate-term one.
Please stay tuned for a notification email containing the video link.