I have received emails asking why I did not buy new long positions yesterday. In fact, I posted the reason one hour into the trading day: the market was not acting well and I wanted to see money moving in.
http://www.effectivevolume.com/showt...php?6941-20DMF
However, I tried to build the long SUNE position, and this second (only half position) long SUNE trade had to be closed too. That was a sign that I could not safely enter new long positions.
ONVO was on the list of possible long positions. As you can see below, it shot up 12% to close down -2%. This is a very big reversal for a leading stock and a sign that latecomers are getting out in a hurry in order to cut losses.
ONVO is trading its float in 34 days, which makes it move very quickly either up or down.
The new list of potential trades is below. I do not know yet whether I will take long or short positions or a combination of both. If banks (JPM/BAC) issue earnings that are good enough for the market, then we will bounce and leading stocks will be attracting money again.
The most interesting trades are at the top of each list. ONVO is at the top of the long potential trades, although with a lower position size. TCBI or QIHU might be more interesting in case of a bounce.
Regarding the potential short trades, you can see that most of them show a low probability of hitting the entry price. This is because we are already oversold on the 5D time frame. Hence, on the short side, it is better to be very early (short at first weakness) or to short a bounce on negative EV.
PS: I will be in meetings tomorrow and will not have the time to post until the market opens.