Volume

Hi Marty, you mentioned several stocks are showing institutional buying. When is the correct time to but these names? Once bases have been formed and trading above moving averages?

YES!

At proper buy points?

YES!

That seems a few weeks away still... AT LEAST!!

The first part of the process of healing after a correction is that stocks need to stop going down, and the selling must subside. We also need to see the institutions putting money to work and buying stocks, and be sure we are not just seeing some short covering.

When we have a real rally it will last for a bit. We do not need to be the first ones in the stock. Allow them to prove themselves before getting aggressive.

Take a stock like DDOG which I like, and watching closely. It traded down to its 200sma, and found support there. It has formed a double bottom base, and looks pretty good. But, it ran into resistance at its 50sma. That is part of the problem with buyings stock off their bottoms. They must trade through their moving averages. Their overhead supply is also an issue.

The Nasdaq was 20% off its highs just a few session again, and now it is 14% off its highs. Getting through this correction is a process, and takes time.  We need to be patients and be ready when the time is right. Building a watch list at this time is important.

I hope this answers your questions!

Regards,

Marty