A No B.S. Way To Determine The Market’s Trend
On Tuesday, the Nasdaq opened firmer and initially
continued higher but soon found its morning high and began to sell off. It found
its low around mid-day and began to work its way higher. The buying accelerated going into the close. This action has it closing well.
The S&P traded back and forth throughout most of the
day but also rallied nicely in late afternoon trading.
So what do we do?
Since my Binary Undulating
Leading Lag-free Smoothed Heuristic Integrated Trend (b.u.l.l.s.h.i.t.)
indicator isn’t working, I’m forced to revert back to simpler methods to
determine trend. And, the simplest method I know of is to draw a big blue arrow
on the charts. With that said (see above) the arrows are pointing down. Judging
from this, I would venture to say that this is just a pullback. Therefore,
continue to put together your list of potential shorts. There’s no need to be a
hero just yet though. Let it bounce and then look to establish new shorts
as the trend resumes. On the long side, continue to focus on those issues (in
uptrends) that can trade independently of the indices. Once again, selected energies are about the only sector left that
qualifies here. Wait for entries though, since they have been soft as of late
(Tuesday notwithstanding)
As far as setups, Chicago
Mercantile Exchange
(
CME |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks poised to resume its slide out of a First
Thrust. Use caution though since this one can
move a half a dozen points in a flash (therefore, requires a very loose
stop).
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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