Today, the market is in the red again as the bad news continues to be everywhere.
A bad labor report tomorrow could send the reeling market into even more of a tailspin.
Which is exactly what momentum traders want.
Though it seems backwards, bearishness is a great time for high-performance breakout traders. Listen to any interview from any great trader and you’ll notice how excited they get during pull-backs.
Why?
Because the stocks that show strength when the overall market is weak can be monsters.
And one stock that fits that profile is computer peripheral maker Logitech (LOGI).
That sector is one of the top 5 hottest sectors in the world and LOGI has been staying strong while the market has tanked:
If it continues its rise and breaks above $72.50, it could go on a nice run.
We’ll keep it on our radar.
Happy trading,
— Scott Welsh
P.S. As a reminder, these plays are based on my longer-term Weinstein Stage Analysis method. The chart above uses weekly candles and a 30 week simple moving average. For details on this method, see my explanation on this Ask The Pros episode starting at timestamp 20:45.
