Mark.Minervini X updated👇
The Dow and Nasdaq have now closed higher for eight consecutive sessions and the Dow has not pulled back for more than 2-3 days and more than 2%. While this strength is very impressive, it is clearly not sustainable.
A lockout rally like we've experienced is a sign of strength. But as the market extends and individual stocks get extended, I generally use the strength for selling into and nailing down gains on my swing trades. This is a natural part of the maturation cycle and a natural part of how I trade.
We've de-risked and booked a number of gain in trades that were extended. We nailed down a couple of nice double-digit profits this morning in $BHVN and $CVHN.
With cycles and seasonality bullish, the strength could carry a bit more into the end of the year. Our models are bullish and trades have been working better than we've seen in 18-months. However, as the market gets extended, I am starting to get interested in shorting the major indexes for a trade. Put volume is starting to show heavy complacency. Longer term reading are bullish. Short term a pullback is overdue.
A lockout rally like we've experienced is a sign of strength. But as the market extends and individual stocks get extended, I generally use the strength for selling into and nailing down gains on my swing trades. This is a natural part of the maturation cycle and a natural part of how I trade.
We've de-risked and booked a number of gain in trades that were extended. We nailed down a couple of nice double-digit profits this morning in $BHVN and $CVHN.
With cycles and seasonality bullish, the strength could carry a bit more into the end of the year. Our models are bullish and trades have been working better than we've seen in 18-months. However, as the market gets extended, I am starting to get interested in shorting the major indexes for a trade. Put volume is starting to show heavy complacency. Longer term reading are bullish. Short term a pullback is overdue.
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Violets : great post
sTone83OP Violets:
；His books has rewritten my understanding, and I've been grateful ever since.
MattSully : Thanks for re-posting MM’s posts bro. Very helpful.
MattSully : Can you figure out what CVHN is?
sTone83OP MattSully: $Crinetics (CRNX.US)$
MattSully : Really think if you’re celebrating Xmas, you’d want to cash out by Friday to enjoy the holidays!
sTone83OP MattSully: Why not?
