Potential opportunities

This rally is overbought and I think due for a correction. Whether we get correction or not in the immediate future is yet to be determined. Every small dip is being met by overzealous buyers, and at some point I believe we will have to correct and give this market a chance to digest these recent impressive gains.


My trading involves preparation and reacting to the market as it unfolds. I am not in the business of predicting how or when prices will move. Rather, I wait for confirmation and react to what I think the market is telling me.


Should the market correct in the next couple sessions, I believe there will be opportunities to go short, as well as building a watchlist of stocks that will move even higher. There are some very impressive looking charts out there - but they just look so darned extended! Some stocks that I like right now for long opportunities are:

Here are some sectors that I believe look ripe for a correction:

USO (Crude Oil):

XHB (Homebuilders):

XLE (Energy):