Short Covering, Into The Close ?

Watch For The Weakest

With today’s heavy downward action, as we head into the close, any number of scenarios could play out.

Work has already been done on INTC, KMX, MRNA, Biotech Leveraged Inverse LABD, and others.

With such a decisive push lower, there could be some kind of short covering late in the session.

For example, as of this post 2:15 p.m. EST, KMX (detailed below) appears to be coming off the day’s lows.

CarMax Weakness

The daily chart has KMX, right a the bottom of a trading channel.

Price action may continue to rebound from this area heading into the close or not.

If there’s a rebound, naturally Put options will begin to decay in value … a desired outcome if one is looking to enter short (at the cheapest price possible).

The bottom of the channel line could be all there is for this week or we could be heading to much lower levels.

It’s up to the trader/speculator to decide (not advice, not a recommendation)

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

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