Yup, the sellers are showing early control of the market to start this week, but let’s be honest with ourselves, have they really showed any conviction to the downside? Any momentum worth mentioning? No.
In fact, I wouldn’t be surprised if the bulls try to stage another rally in the last hour just to get the last word in before the close.
Yes, the market will ultimately sell off again at some point but trying to time when that will happen isn’t the best ideas. Instead, ride the current trend higher. If there is some questions about the sustainability of the trend throughout this week, then scale back the long exposure until it becomes more certain.
With that said, below is my list of long setups that I am following to start the week. There are still plenty of solid risk/reward setups but taking them on a day like today where the market hasn’t shown me enough to add more exposure doesn’t make sense when it comes to putting my capital first.
Here’s the long list of setups:
