Why You Should Continue To Keep Your Powder Dry
On Friday, the Nasdaq lapped slightly higher but quickly
reversed and began to sell off. It found its low early in the afternoon and then
chopped back and forth for the remainder of the day. This action has it closing
poorly, keeping it below Thursday’s high, and well below the March highs.
The S&P chopped around in a narrow range but did manage
to close in the plus column. The April highs/200-day moving average appear to
be minor resistance.
So what do we do? I remain concerned by the fact that the
indices can’t make any meaningful progress. Looking to
the sectors, it’s a mixed bag. I’m encouraged by the action in various drugs,
retail, health care plans, and insurance. On the other hand, Internet may be
stalling out at highs, software looks like it’s headed back to its recent
lows, the semis are questionable, and biotech, although still constructive, was
hit especially hard on Friday. When you add in influx of news and a lack
of meaningful setups, I see no reason to take new positions. Therefore, keep
your powder dry and wait for a clearer picture.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….I’ve just finished to reading your book and LET ME TELL YOU IT’S GREAT!!!
RT
Italy
