Even though stocks were still holding at or near all time highs on Monday, Ryan Mallory, of SharePlanner.com, is still concerned that stocks may start eroding before the indices start showing weakness and urges traders to remember to always be aware of their surroundings.
It's a New Week, but Market Indecision Seems to be Prevailing
Despite the stocks still remaining at or near its all time highs, I am still concerned that stock prices may start eroding well before the indices start to show that weakness.
We saw that happen in September where prices were falling apart—particularly in the small-caps—well before the broader index ever showed any signs of it. If you disagree, just look at the percentage of stocks (T2108) that were trading above the 40-day moving average and how that percentage started dropping well before the index started its September selloff.
I'm not saying to get net-short at this point, just be aware of your surroundings.
Here's the Bullish Watch List for the Week:
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By Ryan Mallory, Founder, SharePlanner.com
