100% Proof Of A New Bull
On Thursday, the Nasdaq gapped higher on the open but
quickly reversed. It found its low in early trading and generally worked its way
higher throughout the rest of the day. This action has it closing well but shy
of its 50-day moving average.
The S&P put in a similar performance. It remains well below its 50-day and 200-day moving average.Â
Watch the 870 level as potential support. If broken, it
could head back to the October lows.
So what do we do? The fact that the market is
reversing from an oversold condition combined with buy signals beginning to
trigger suggests that we are now in bounce mode. However, don’t look to catch
bottoms. Wait to see how far this bounce will take us and then look for shorting
opportunities (e.g. transitional patterns).
There remain very few meaningful setups. Remain
patient, we should see more and more stocks setting up on a continued bounce.
100% Proof Of A New Bull
Born 01/21/2003, 09:30 PM, 49 lbs. 4 oz. Mother and son doing fine.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….I have read your book 3 times and each time I read it I get a better understanding of why your method seems to work so well yet be so simple. Not only does it capture the very high probability move to the previous high by taking profits on half but also it allows the home run largely on the houses’ money. This is really helpful with options because of the large spreads. Congratulations on the best book I have seen and by far the simplest and most effective short-term system I have seen…”
John H.
