Any kind of strength whether it is by a gap higher or intraday rally, immediately gets sold off.
We’ve seen it almost every day now over the last seven trading sessions.
Throughout the past week, I was adding and subtracting positions. I was booking profits in Nvidia (NVDA) for 4%, and Olin Corp (OLN) for 5.2%, while adding new positions like Ferrari (RACE) and Lam Research (LRCX). But now, today at least, I am a bit cautious about wanting to add new trades to the portfolio, and may even consider booking some of the profits currently in LRCX before they report on Tuesday.
I’m at a point here where, okay, the market isn’t selling off, but it isn’t rallying either. It could go either way at this point, and I don’t see reason to continue to pile on more positions to the portfolio, until it can ultimately breakout of this 7 days range and start making some solid new all-time highs. Not marginal ones like we keep seeing over the past few weeks, but legitimate, clear-cut all-time highs.
So today, I’m leaning towards not making any trades. Ideally, I’d like to add more exposure throughout this week, and I’m confident I will in one direction or the other, but today, the market isn’t giving us enough momentum to do anything with.
One of the best skills you can have in trading is knowing when not to make a trade, and today, I am doing exactly that.
Here’s my bullish setups for this week, and for when the time is right: