Wait For This To Happen Before Getting Aggressive
On Thursday, the Nasdaq generally worked its way higher in
a mostly choppy fashion. This action keeps it above its 200-day moving average
and it has it peeping out of its trading range.
The S&P put in a somewhat similar performance. So far,
it too remains above its 200-day moving average.
So what do we do? As mentioned on
Wednesday night, before jumping in (i.e. getting aggressive), I’d like to see
the indices decisively clear the top of their trading ranges and then have an
orderly pullback–provided this action doesn’t put them back into their trading
ranges. Since the market didn’t too much on Thursday, there’s really nothing new
to report.Â
No setups tonight. Aggressive traders might want to
watch for shorting opportunities in areas that still look vulnerable in spite of
the recent rally such as biotech and the HMOs.
Best of luck with your trading on Friday!Â
Dave Landry
P.S. Reminder: Protective stops on every trade!
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