Good morning
The caution flag has been out for the Alpha Wolf members for weeks and it does not look as though that is likely to change soon. Even though earnings were strong from several companies this week. Equities continue to struggle and the bearish sentiment seems to be picking up steam from the talking heads on the financial news networks. Technically there are bear flags forming in many sectors and indexes. The bearish ETF's and volatility plays should continue to be on your radar for short term trading opportunities. Options expiration could give the markets more volume and volatility today as equities are up slightly in premarket. The dollar is flat along with gold and oil.
It is important to remember that you do not have to trade every day if you aren't finding the setups that you are comfortable with. There have been some low float garbage plays that have had some insane moves that will give people that FOMO ( fear of missing out) feeling but if the setup isn't there it is better to be missing out than to chase some low quality stock that becomes a huge loser. If you decide to play in the low float ripper space make sure you are playing with lottery ticket money. Your odds are probably better than playing the Powerball lottery but the risk of losing all or most of your capital is very high. Capital preservation is king and having cash is always a viable position. It will enable you to take advantage of quality setups in good companies as they present themselves in oversold conditions at areas of potential support. Deploy your capital wisely and consider scaling into the stocks you really want to own for long term investment plays. Recognize that even though a stock may be oversold it can stay that way for some time and once fear takes hold of the markets and individual stocks it can continue to feed on itself longer than one might expect creating even lower priced opportunities. Learn to have patience and let the stocks you want to own come to you.
