This kind of action will probably dictate us for a little while. As the summer holiday is getting closer to an end and more market participants come back to the trading table, it isn't going to be smooth sailing. There are still many things to be worried about and many potential negative news that would come our way. The one thing that would keep everyone in check is the number of unknowns that's still yet to come. On the bright side, it also looks as though it's going to take some really bad news to drive this market down and test the previous low. Well, lets just hope it doesn't come to that point. Yes, we have talked about the fact we need to test this market and we just had a taste of that the day before yesterday. Testing the market does not mean testing the market's recent low, it simply means we have to test how resilient this market can be to recover from a bad day or how this market can hold up against bad news. This will be an ongoing process untill the time when market moves our attention away from this crisis. Perhaps, and hopefully, the earning season can provide such a distraction.
Now some plays...
FSLR/LDK/JASO, are solars making a comeback lately? We haven't seen a coordinated group move in a while and all three stocks closed pretty strong relative to the rest of the market. We have flipped some intraday but it's really too soon to tell if it's a good idea to pile back into this sector. Do keep your eyes on these ones though because if they do move, you definitely don't want to miss the boat.
ISRG, this one is at an interesting point here. It closed at the upper point of its recent trend and at a month high. We'd really want to see a high volume breakout just to justify chasing this one with a meaningful position. At this point, we aren't taking any bets and would rather be late to a confirmed breakout as oppose to going all in now with hope that it'd bust out.
CRNT, we got back in a little bit of this one as things look to settled down somewhat on this one. This is very much a swing trader's stock as it provides plenty of time for reentries and exit.