Hey Market Pilot,
The market is all sorts of weird and special right now. Since the indexes are a mess and not trending, this means there isn’t a strong overall force helping to guide stocks. This in turn means that many stocks are free to move how they please and can be pushed all over the place.
Fossil Group (FOSL, pictured below) is a great example of the potential moves that can happen within a stock.
In one sense, I can say that the idea of FOSL trending down has worked since the hourly Moxie Indicator™ fired red, indicating a push down in price. But then there was a massive move to the upside, only hours before the FOSL earnings report. Maybe traders who were shorting the stock received news that made them nervous to hold short through the report, which sparked a short-covering rally.
This short rally was then met with an equally large drop the other way as the report came out and FOSL was back to where it was the day before.
Unless you can hang on for the longer duration and the bigger picture in setups like the one in FOSL, the only thing that seems possible with moves like this is day trades or extremely quick swing trades.
It’s crazy out there with all the various forces acting on the market right now. So if something blows up in your face, don’t be too surprised – it’s just how things are going right now.
Your Profit Pilot, TG
