Major averages rose on higher volume with the S&P 500 closing above its 50-day moving average. The NASDAQ moved further above its prior range breakout point on increased buying volume.
Crude oil rallied 5.4% in yesterday's session after reports indicated that OPEC would cut output to between 32.5 million and 33.0 million barrels per day. This compares to current production of approximately 33.2 million barrels per day.
We recently advised members to potentially get on board a number of stocks such as TWLO and LN when they were trading close to their respective logical areas of support on constructive pullbacks. This minimizes risk as one's sell stop would only be a few percent or less away from one's entry price.
Yesterday, both got ahead of themselves on a price basis so profit taking earlier in the day when both were up a few percent or more would have been justified.
Note that some may have taken partial or full profits sooner, a justified move, but for those who still had positions, such could have sold the remainder in yesterday's price surge. Selling into strength is never absolutely precise but the idea, done repeatedly, can make a nice difference to one's account over time.
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