It turns out the angst the market was feeling earlier this week was justified.
Everything is suddenly looking a bit shaky.
The earnings reports lately are not inspiring and upward momentum is starting to get knocked back.
At the same time, downward pushes are starting to become more stubborn.
Take today, for instance.
The market opened up buoyantly and it looked like the recent bullishness was back on track.
Not so fast.
As of this writing, the market has turned around and is threatening to become a red day.
Not good.
Which means our BITO trade will have to be put on hold for a moment.
So, can anything be done?
Of course.
When things get bearish, we can look for sectors and stocks that aren’t that bearish.
The stocks that hold up during pull-backs tend to explode when things turn positive.
We’ve mentioned that Retail actually fits this profile. Weird, but true.
You know what else has been bullish lately? Travel and Leisure. Who could’ve guessed that a few years ago?
Specifically, Hilton Grand Vacations (HGV) has shown some strength lately.
If people keep traveling and HGV continues its recent strength, a possible entry could be a break above $56.33.
The market looks a bit nervous right now.
We just need to be patient until it gets optimistic again.
Happy trading,
Scott
