Before my week off, I left with the thought that it was certainly no place to be long, that there was no rotation evident, and as such we needed to shake the tree a bit. That’s exactly what happened and a few things did reveal themselves during the shake out. First, we could have a bit more downside to run, but I do not believe this is yet the start of anything bigger. Second, I do believe something bigger is coming, just not likely this year. 

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More likely is we start to form another box just as we have for most of the last few months as the attached SPY chart illustrates. A few stocks are starting to emerge as candidates for a bounce. My favorite two stocks to be long for the coming week are APPL and UBER. I try to never chase, and certainly not chasing in this environment, but on a dip, I would hold my nose and buy either of these stocks. If successful in a buy. I won’t be greedy! Remember a box is likely to form, even if not sure of exact boundaries yet, so a rally is a chance to take profits.  

Thanks,

Joe