An Unhealthy Dead Cat
On Friday, the Nasdaq gapped higher, dipped and began to
rally. However, it found its high late in the morning and began to sell off in
earnest. This action has it closing on its lows.
The S&P also sold off after trading higher. It’s
important for the May lows to hold here.
So what do we do? The fact that market can’t even mount a
decent dead cat bounce is a negative. Combine that with more light and choppy
trading, and I see no reason to get excited. Further, once again, there were very
few meaningful setups again tonight (Friday). About the only thing that is set
up is the gold stocks. Therefore, keep it light, maybe nibble here and continue
to wait for more opportunities. As I said in a few e-mails today, “it’s a
marathon, not a race.”
Amex Gold and Silver Index
Looking to potential setups, Barrick Gold
(
ABX |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night, still looks
like it has the potential to rally out of a pullback.
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….Give a person a fish or teach them to fish I believe is an appropriate metaphor — I know traders who will lose 10k in a day, but balk at paying $100 bucks for your fishing
pole — best book in my trading library. Column continues to be great, no bs.
Thanks…”
Pete
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