Following the red…
Had six stocks from my Nifty-Fifty list on individual buy signals for today’s open: UAL, SKY, FBHS, BRKS, HII, FIVN. At the moment, five, bought on the open, are down.
It is likely because most stocks trade with the general market, which it is always a warning flag, bullish or bearish, for initiating individual stock buys or sells, and in today’s case the bearish warning is so far the reality.
The market has been in an intraday downtrend since mid-day Monday, a trend that has so far continued today (the red cast on the chart below is the general-market trend), and its weakness is obviously weighing on stocks that otherwise might have rallied (and might still if the market firms into the close).
So, as the old saying goes, “the trend is your friend,” but on some days like today it is not (unless one’s a bear, of course).
UPDATE AFTER THE CLOSE: the stocks above finished down 1.4% as a basket (1 up, 5 down). Should be noted stops must be used at all time when playing this game (for example if bought on the open, the second bar on the chart below would be a possible stop).
(right click on this SAMPLE chart for a larger view)