Watching WOLF and PGR
Watching WOLF and PGR
Yesterday’s action was an improvement.
Now what?
Is this the bounce?
That's the question on everyone's mind. Is it the start of the next move up? It's way too early, There's no way to know.
All we can do is trade what we see on the charts. So while things still look a bit grim, be sure to:
Follow the price
Be open to the possibility of a significant bounce
Don't stay bearish if the trend changes
The daily charts show a chance. The small timeframe 65-minute charts show the indexes all still under resistance with the potential to reverse back lower. They need to get above that resistance and make the moving averages curl up for the trend to change.
While we keep an eye on the overall market there are some potential leaders emerging and/or gathering strength.
WOLF had a very nice move on earnings last month and has since worked sideways in a consolidation that looks to be setting up for higher prices.
Yesterday it broke above the downtrend line of the last two weeks. Watch for price to break over the Sept. 2 high of 113.39. If that triggers long, keep an eye on the $103.50 area for risk management. As it moves higher sell some into the $120 area to book some profit and cover or reduce risk.
PGR has been a leader as well with the insurance sector consistently showing strength relative to the overall market.
In a similar fashion, it has worked off the big August move by consolidating in the $122-$128 range. Yesterday was a strong breakout of that range opening the door for a move higher. It has already cleared the highs of the last several days and the challenge here is managing risk. $121-$122 is an important area on the downside. Sell a portion into $130 and above to reduce or cover risk.
J Powell speaks at 9:10 this morning so that could have an impact.
Stay cautious, but open-minded. Respect stops. Protect capital. No need to be in a hurry here.
***This is NOT financial advice. NOT a recommendation to buy, sell, or trade any security. The content presented here is intended for educational purposes only.
Andrew Moss is an associated member of T3 Trading Group, LLC (“T3TG”) a SEC registered broker/dealer and member of FINRA/SIPC. All trades placed by Mr. Moss are done through T3TG.
Statements in this article represent the opinions of that person only and do not necessarily reflect the opinions of T3TG or any other person associated with T3TG.
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