Oil stocks continued higher today after pulling back in early morning trade. The pullback set up a classic trading pattern. Entry came after the eighth bar of the dip. The higher high became the buy point.
Semiconductor stocks rallied too. USD put on a good show.
I saw someone mention today, “they don’t ring a bell at the bottom…” That’s true. You never exactly know when a bottom is in until much later. Take these financial stocks… One of these days, they are going to rally when bad news hits the sector. Actually, they don’t even need news to rally at this point.
UYG had a high volume day today, and GS traded in a narrow range inside the previous day’s candlestick. Instinct is telling me that the close near the low is a fakeout. I’ll be watching for a long entry tomorrow. A higher high on the daily chart would be most conservative. I doubt I wait for that. Especially if stocks in the sector gap higher. It’s options expiration week, and anything can happen.
A gap lower that takes out the five minute high, later in the day, will get my attention too.
UWM needs to pick it up tomorrow. It’s still in buy mode.
