Look At These Sectors Before Making Any Decisions
On Tuesday, the Nasdaq lapped open and initially
rallied but soon found its high and began to sell off. It bounced around mid-day
but (yet again) sold off going into the close. This action has it closing poorly/below its open. It remains well below its 50-day moving average (and on its
way to its 200?).
The S&P also gave back much of its earlier gains. It too remains
below its 50-day moving average (and on its way to its 200?).
So what do we do? Well, I wish I had something good
to say, but I don’t. The indices continue to sell off late in the day. This
action suggests that no one wants to take ’em home. In the sectors, most
have formed tops or remain in bona fide downtrends. If you get bored, plot
software
(
$GSO |
Quote |
Chart |
News |
PowerRating), Internet
(
$IIX |
Quote |
Chart |
News |
PowerRating), Telecom
(
$XTC |
Quote |
Chart |
News |
PowerRating), Retail
(
$RLX |
Quote |
Chart |
News |
PowerRating),
the Semis
(
$SOX |
Quote |
Chart |
News |
PowerRating), and the Banks
(
$BKX |
Quote |
Chart |
News |
PowerRating) (to name a few) and
you’ll see what I mean. Considering the above, watch for shorting opportunities
but avoid getting too aggressive since we remain oversold–wait for a meaning
bounce in the markets.
No setups again tonight. Once again, trail your stops lower if you took
recently mentioned shorts such as CMI and CIT.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
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