It seems way too obvious to keep on working but buying the gap-down open to start the week was the smart trade once again. It doesn't seem to matter if the reason for the selling is Donald Trump, North Korea or Italian bonds, the buyers have had so much success buying weak opens that they hardly hesitate. One of these days it will turn out to be an ugly trap but so far today is not the day.
There still is plenty of red on the screens and breadth is running very poor with about 2,100 gainers to 4,500 decliners but the indices are well off their early lows and both the Nasdaq 100 ETF (QQQ) and the Russell 2000 ETF (IWM) are in the green or close to it.
There is often a tendency to focus on some of the bigger-cap names when there is dip buying like this. I am taking advantage of that with additional buys of Alibaba (BABA) , which is my Stock of the Week, and Twitter (TWTR) , which is my technical buy for today.
Another name on my radar from last week that is acting well is Bilibili (BILI) and I am looking for some additional add points. Other China names such as Momo (MOMO) (see Tim Collins take on MOMO here) and Jupai Holdings (JP) are on my radar as well.
The indices are acting poorly but the "buy the dip" action combined with a focus on stock-picking is paying off well. This is a good environment for opportunistic traders.
