Right now I am still holding onto my Visa and CIT positions with about 50% of my buying power. Both of them held up well in light of the selling earlier today. I am neither here nor there about the markets but my individual positions continue to look good.
On the one hand, if the markets blast higher tomorrow and rally to new highs, I will continue to sit on my hands as my positions will likely move higher with the market and refrain from initiating any new positions.
On the other, should they continue pulling back, I will keep my fingers crossed that I do not get stopped out of my current positions and that they eventually resume their advance once the selling eases. However, the pullback will create fresh setups that will allow me to employ the remain 50% of my buying power and any buying power that maybe freed up should I be stopped out of any of my two current positions.
So that is my plan for tomorrow in a nutshell.
There are two stocks in particular that I am watching for possible entries this week CHOP (Breakout pulback setup) and AMCF (pennant setup). If you look at the recent historical price action of both stocks you will notice they both had a day when they advanced significantly on massive volume due to positive news that likely surprised the market. Therefore, they have a very high probability of not only advancing should the markets continue to advance but also to outperform!