After September, in comes October with the bearish price action plus the high put/call ratio, the market is a ripe environment for a short squeeze, says Danielle Shay of Fivestartrader.com.
I’ve been eyeing some buys on some top tickers, but with the downside price action, nothing has triggered quite yet. Earnings season is coming soon, and pre-earnings momentum starts right around now. We’ll be in the midst of the October earnings season before we know it!
Critical Support Zones — and What to Do Next
So, where do we go from here? It all depends on if the critical support zones, the indexes, and mega-cap names break or not. I’m still holding out for a buy going into earnings, but that’ll change if these zones can’t hold. If they can’t hold, we could be looking at a big down draft in the indexes, as there isn’t much support left below.
I cover all this and more below:
Learn more about Danielle Shay at Fivestartrader.com.
