Looking for Buying on Selloffs in Small Caps Sectors
Quick Note* I have been focusing my trading on smaller cap companies lately because they tend not to correlate with the broader market directly, and trade on their own fundamentals and technicals.
In this small cap arena, another little nuance ( trade setup ) that I like to capitalize on, is to find sectors that are green despite serious selling that occurs in the broader market. I am not necessarily looking to find defensive stocks ( tobacco, utilities...ect). Instead I am trying to find sectors that have been beaten up as of late, and are starting to see money flow back in despite general market conditions. After running some scans during this morning sell-off and analyzing a few charts, here is a sector and some trade setups that I may be taking. Sector = Basic Material : Industrial Metals and Mining with a bias toward Uranium. If you notice they have been trending higher on decent volume despite the general market sell-off. They are in order from my favorite down.
Trade Setup in URZ.
Trade Setup in URRE.
Trade Setup in UEC.
Trade Setup in AZC.
Trade Setup in PAL.