Bulls Are Not On Their Best Behavior
Much of it has to do with digesting recent gains from August, which is why we haven't seen the kind of selling that was experienced on July 31.
Nonetheless, it doesn't hurt to have a combination of long and short positions in your portfolio right now. Stocks are behaving like they did back in July where the indices weren't necessarily eroding, but under the surface the selling was pretty heavy.
And you also have momentum stocks taking an absolute beating as social-media stocks like Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) get creamed, as, too, is Tesla Motors (NASDAQ:TSLA).
So be careful out there, there are plenty of long setups, but until this market wants to get aggressive, I'd hold off on making any major additions to the long side.
Here's The Bullish List Of Trade Setups
