Cool Bounce...Now, What?

I have spent better part of this morning's session unloading some longs into strength, as I suspect the market could easily calm down after an exciting few sessions (well, afternoons, at least) for bulls. New Year's Eve on Monday is going to be a full session, but by then it would not surprise me to see some last-minute selling as everyone officially closes the books in 2018, for those who have not already. 

Indeed, one of the more challenge aspects about this type of market environment is that I need to constantly remind myself the broad market is far from healed. Hence, when I pick up a WING long like I did earlier this week inside Market Chess Subscription Services, part of me is inclined to think I nailed a golden long-term entry for a possible massive winner. 

After all, as we see on the WING daily chart, updated below, this week saw Wingstop's first 200-day moving average (yellow line, arrows) test by price in well over a year. WING has tremendous growth prospects, and has outperformed its peers for much of 2018. The stock received an upgrade this morning, helping it to pop more than the market at the open, and decided to talk partial profits. In a healthier broad market, I would be more inclined to keep holding.

However, bulls still must prove that we are, in fact, back in a healthier broad market. And that will take a fair amount of heavy lifting going forward to discharge that burden of proof, which is part of the reason why I was a seller into strength. 

In other words, the last few sessions of exhilarating price action has been just that--Some holiday trading "beer and circus" for traders not on full-blown vacations.

But lest we forget that the tone and tenor of the change could easily change again next week and beyond when the holidays officially pass and the cold silence of winter takes hold.