When in doubt, stay out
The markets are in a tight situation
right now. The NQs have been chopping between the daily 5 period
moving average at 1689 and the daily 50 period moving average at 1699. As
earnings season comes to an end, a valley period lull is taking over in the
markets. It is best not to swing anything out there until the markets can form a
trend. When in doubt stay out.
In the meantime, the best action will be away from basket stocks. The gapper/dumpers
on news items and earnings warnings should be watched to play the opening
tightening or pups. Will go over those again in the next article.
Jea
Yu has been involved with the equities markets for over 10-years. He specializes
with intraday trading in the U.S. equities and futures markets. To receive a
free 7 day trial to Jea Yu’s Underground Trading Pit,
click here or call 888.484.8220, ext. 1.