Navigating Market Volatility
We wrote about market volatility on Wednesday prior to the opening bell. We discussed navigating this choppy market and how successfully doing so would lead to a positive outcome. With futures lower again this morning, we reiterate our thoughts on reducing market exposure and narrowing our focus to relative strength candidates.
Energy Sector – Volatility
The energy sector is in focus, as the Wednesday list most active stocks were all from this group. Oil equipment and services dominated investor interest,
Wednesday most active stocks and market movers were from this industry group, with the exception of Chipotle.
The list below is from the oil equipment and services industry group. Use your Trade of the Day Setup for gauging new entries and exits.
Canadian Natural Resources (CNQ) was mentioned early in the morning during the LIVE broadcast as a potential trade. Block size orders were pouring in at the time. The quick and nimble managed a better than 4% return intraday.
Most likely the stock will continue to the overhead 50/200ma before running into any resistance as it clears VBP levels (dashed horizontal line).
Holly Frontier (HFC) was mentioned “prior” to the open yesterday, as we observed activity in this name during the Monday and Tuesday trading sessions. Many of you in the trading room gave the room a heads up as well. Congrats.
Check out the volume in Chesapeake. Interesting? 200 million shares? Either someone knows something or that’s a heavy short bet that just covered.
The takeaway the past few days has been to limit your exposure and narrow your focus. Add to stocks that are working and jettison those that are not.
Cash is also a potential idea while staying safe and out of the market. Waiting for a trend to develop can help you sleep at night,
We’ll be broadcasting trades via LIVESTREAM 9:20 – 4:10 PM.
Happy Trading,
Vinny
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