Stock indexes finally started to show some weakness on Tuesday, following what we've been seeing in the transports for the past several weeks. A break down in this sector doesn't mean the entire market is going to fall apart, it just means you want to be careful with bullish exposure. There will be a few "honey badgers" out there, stocks that continue to do well despite the overall market. Ambarella (AMBA) fits the criteria for this kind of ticker and while we haven't been filled in the closing order for our call debit spread just yet we're in a great position for decay and a bit more upside. Cyberark Software (AMBA) and Medtronic (MDT) were moving with the market, CYBR still looks fine on the daily chart. MDT will be something I'm willing to hold through earnings.
More from Video
How quickly do we find support, is what we'll want to know now, as the correction is occurring while economic optimism builds.
Despite the president's promise of no stimulus until after Nov. 3, there are no signs yet that this is the sort of correlated selling that leads to a deep correction.
Salesforce, Amgen and Honeywell will give a lift to the DJIA going forward.
CAG has hung onto the bulk of its recent gains, and could rise to the $50 area, according to the charts and indicators.