Maybe The Day After Tomorrow?
I’m Dave Landry and I approved this column.Â
On Wednesday, the Nasdaq chopped around in the morning and
then generally chopped its way higher in afternoon trading.
This action was enough to put it back above its 50-day moving average.Â
The S&P put in a similar performance. This action puts
it right at its 50-day moving average.
So what do we do? A negative Dow, less than 2
points on the S&P, and 10 points on the Naz. This isn’t very
impressive for the day after the media celebrated the return of the bull. Just
to make sure I wasn’t missing anything, I tooled through (vs. just running
relative strength scans) all of the 239 sectors/sub-sectors that I
follow. Yes, many have rallied over the past few weeks, but so far, most only
appear to be correcting from their prior downtrend. Said alternatively, they are
pulling back. Therefore, based on this and setups produced by my database, I
still think the short side remains the logical side to play. The only caveat is
the fact that the market remains choppy and is unable to follow through for more
than one day at a time. So, keep it light.Â
As far as setups, Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating) looks like the
it has the potential to resume its slide from multi-year highs from its first
pullback–i.e. a First Thrust (as usual, shoot me an email if you need
rules for this or any pattern mentioned in this column).Â
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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