Scalper1 News
Major averages finished lower yesterday on lower volume with the NASDAQ Composite closing under its 50-day moving average and the S&P 500 closing below its 50/200-day moving average crossover. With the majors erasing the prior day’s gains and finishing under resistance levels, the only respite is the lower volume. Today is quadruple witching which exaggerates volume and adds further “murk” to the waters. The unstable, erratic nature of this market makes it difficult for investors to navigate, and a cautious approach is likely warranted. Chinese social networking platform Weibo (WB) had another pocket pivot. We reported on this stock on November 25. As we have suggested many times, it is better to wait to buy on constructive weakness. For example, WB had a low volume “voodoo” pullback for a few days leading up to December 11. It could have been bought around then instead of on the pocket pivot day. On another point, for those who bought WB either on the first pocket pivot report or on any of the “voodoo” days that followed, today could be a good day to take at least partial profits since the stock is sticking straight up relative to the chart and to the action of the general market. The after-hours market can be used to sell if you did not already do so. Of course, some may have a different style and prefer to add to their position on a day like yesterday. But given the general tone of the markets over the last couple of years, it has been better to take profits when you have them in context with the stock’s chart and general market environment. Scalper1 News
Scalper1 News