What Overhead Supply Looks Like
Now, does that change the fact that there are more stocks going up and making new highs than stocks going down and making new lows?
No.
It just depends on your time horizon.
What are you trying to do here? And when are you trying to do it?
Look at the S&P500. This is a similar situation where the index is below overhead supply. A neutral position below that resistance remains best. There's a reason for that:
Now, just because the Dow hit our upside targets and the S&P500 is below overhead supply, does that mean we're not going to spend our time looking for stocks to buy?
No it does not.
It's a market of stocks isn't it?
There are a lot of opportunities out there right now.
We don't have to be a slave to the indexes.
If you took the trade and your upside targets were hit in the major averages, then great.
But that doesn't change the fact that these indexes continue to dramatically underperform the real winners in this market.
And that's what we're here to do - find the best opportunities out there.
We're going to keep trying to do that.
Premium Members make sure to catch the replay of this week's Live Conference Call.
All the trades are outlined here - both our Risk and Reward.
Let me know what you think!
- JC