Market Comments Submitted by The Ambitious Trader
Submitted by The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor
Good Time For Some Profit Taking…
If you haven’t taken any profits during the last few weeks, now is the time. The VIX has become dangerously over-extended to the down side and may snap back up, resulting in a large dip in the indexes. Such a dip can pretty much wipe away any gains you have. Other reasons for selling? Low quality stocks are starting to make moves, the move is on below average volume, resistance at current market levels and failure to move beyond resistance. In order for the market to be healthy, all the indexes must be in an uptrend. The Russell 2000 has not even been able to climb above the 50day MA this whole time since the initial sell off occurred late in October. If the RUT cannot climb above the 50day MA, it will face resistance and that is the point where all the other indexes will follow suit and drop as well.
The Ambitious Trader: Stocks, Trading, Investing..My Ambitions as a Trader and Investor is not a registered investment advisor. Please read the complete Small Cap Stocks Blog Disclaimer
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