The Ren and Choppy Show

One of the major points we have been emphasizing for Members of late has been the notion that markets typically do not come back from Labor Day full speed ahead. Despite the conventional wisdom that once the summer (unofficially) is over, everyone involved in market returns to the desk, in reality it can take a good one, even two weeks before the market begins to take on the feel of a varsity game again. 

Case in point: This morning bulls came running out of the gate for a moderately energetic open higher, only to see the indices now turn back to red. 

A momentum name like REN, in the energy sector, nearly tagged $24 off the bell. But now it is printing a $21 handle, which reinforces the idea that we may still be in the final days of summer trading, despite Labor Day in the rear view mirror. 

As a result of the continued summer chop, it is likely correct to not be pushing the envelope just yet. To be sure, there are intriguing stocks and sectors we are monitoring closely. But there are also some short setups would could easily work well if bulls come back from the beach in lackluster fashion.