Indeed, MS bounced with the rest of the market.
When the bounce was under way, I decided to start new long positions.
RL was on the Breakout watch list and looked interesting when still in the breakout zone.
Finally, at the end of the day, I decided to enter a long SPXL trade on a pullback into support of $62, level where the stock did come back to.
This is the Figure of a few minutes ago.
The Portfolio is now 30% long. I felt that these decisions were reckless as the whole move looked like shorts covering, but in general, shorts take a few days to fully cover. Hence, I still think that we could have some legs.
HOWEVER, this market has been prone to selling opening gaps. Hence, I might as well sell the open on SPXL in order to buy at a lower price. No decision taken here.
The trade ideas for today are below. Most ideas are still on the short side. I feel this disturbing, as we are still oversold.
EBIX and PRAA are two different long ideas: EBIX had a breakout. Hence, a pullback can be bought. The pullback range is rather wide, whihc means that we have time to decide. $31 could be a good target, depending on the EV pattern.
PRAA is oversold and could breakout as the LEV pattern suggests accumulation.
The difference with EBIX is that we need volume to support the trade.
The IBB trade would be on a pullback into oversold territory, but I do not believe at all in that level to be reached.