Week in Review - Saturday January 3rd

The market is still in a correction so I am being very careful about adding new positions. I’m keeping myself busy by being on the lookout for stocks that are acting well, and to a lesser degree managing risk on open positions. I did hit my stop on YMM, cut DOCS loose at break even, and I added to my NVDA position on Friday.

Current Positions

I’m roughly 30% invested right now and mildly optimistic about the market at best. Let’s use the NASDAQ composite index to show you why.

Despite the seemingly good action of stocks on Friday the market has not confirmed any sort of uptrend. It actually just confirmed downtrend on Thursday. So a bounce back up on Friday isn’t a big surprise.

From here is could consolidate further, continue the downtrend, or maybe start a new uptrend. Nobody knows.

Friday’s move in stocks included some strong moves on high volume, but it also included a lot of strong moves on low volume. The NASDAQ confirmed that because even though it moved up Friday it did so on lower volume than the previous day.

So it’s a mixed bag. Buy the best looking set-ups according to your criteria but don’t take on too much risk too quickly, because we are not out of the woods yet.

On the chart below I drew in yellow the sort of action I’m looking for in a confirmed uptrend. If I see this or something similar I’d be willing to push the envelope more, assuming that my open positions are showing me some decent profits to lean.

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