The index is poised to decline further- short to medium term - as it broke 35 and 65 SMAs and it is looking to test the previous all time high in the immediate term:
However, it is approaching extremely oversold levels so a rebound is possible in the short term, probably late this week to next week. However, if it continues to decline further, be quick in pulling the trigger when your stops are hit.
The bearish divergence on the MACD should have been enough to tighten your stops.
Long term trend is still up as the Index still trending above the 200 MA.
Another information that we should look at is the NFB, which despite the 2%+ decline today, NFB today is worth 622M. (Is this right? AP alone already net 575M NFB).
AP was heavily sold down during the entire session, dropping to a low of 31 before recovering at the end of the session, closing at 32.80, slightly lower by 0.46% from the previous session. Volume traded was exceptionally high with 58M+ shares exchanged hands today, the most active stock traded for today.
AP generated a buy signal today. Tomorrow will be the confirmation if the signal is good.
Anyway, moving on to the big question this week: Are the big guys currently accumulating or distributing?
One more thing. As the market continues to decline further, we come up with different reasons to hold on to trades - specially losing ones. If your threshold for loss is hit, cut loss and move on to the next trade. If a stock is going down, there's probably a good reason why it is moving down. And I don't want to find out what's the reason behind the decline when it has already done a significant damage to my account.
Get out when your mistake is still cheap.
Bleeding portfolio as predicted by our favorite gurus? Well, mine's not. :)
AP is up by 21.17% within 26 trading days with doubled up position.
