Word of advice:
If you like money and respect the money you’ve worked hard to earn, be careful trying to catch falling knives.
There’s absolutely nothing wrong with being a couple of sessions late after a bottom is put in.
But A LOT can go wrong if you’re early and wrong.
Let the market prove itself first. You don’t need to catch the exact bottom to make money.
I have a feeling there’s going to be a crazy window of opportunity before the year ends.
And I can almost guarantee the majority of market participants will FOMO in when it’s already too late, just like they always do.
Make sure you show up every single day. Win or lose, just show up.
Trying to post as much valuable content as possible without flooding the feed.
These were two of the main setups I highlighted yesterday, and I hope I was able to help some of you capitalize on them.
$LLY $MRNA
The only two names I’ll be focusing on for the majority of the second half of the week.
$MRNA Right back near that $225 level from last week, and I think it has the juice for another leg higher this week. There’s a strong narrative behind this one, so definitely worth keeping on your watchlist.
$LLY Huge change of character over the last few sessions, and now that it’s back above $1,200, I think it’s worth paying attention to again. This name has been trading sideways since June, so if healthcare names continue to catch a bid, I think this has plenty of room to run from here.
Morning thoughts:
Another decent gap down in the market this morning as we take out yesterday’s lows. PPI also came in scorching hot, which certainly isn’t helping.
$TLT continues to push higher as yields fall, which is exactly what you would expect to see as things begin to unwind.
High beta names continue to see selling pressure with very little relief.
Meanwhile, money continues to rotate into more defensive sectors like healthcare and consumer staples.
A few names I’m tracking closely here:
$LLY $MRNA $COST $TGT $WMT
For now, I think it’s important to pay attention to where money is flowing rather than trying to force trades in names that continue to show weakness.
Good luck and trade safe, everyone!