Back To Blue Arrows
On Thursday, the Nasdaq lapped lower and sold off hard. It
chopped its way higher throughout midday, but then resumed its sell-off. This
action has it closing at its lowest level for 2002.
The S&P also sold off to close at its lowest level for
the year.
Thursday was a day where the blue arrows prevailed. I
thought we were in bounce mode, but the market didn’t seem to care what I thought
(most of the time it doesn’t). I was hoping (oops, did I say hope?) a more meaningful bounce to set up shorts in technology. Obviously, that didn’t
happen.
So what do we do? Thursday’s action leaves us very
oversold. And in a very oversold environment, it’s usually good measure to
proceed with caution. If you bottom fish, oversold will become more oversold. If
you short it, then it’ll bounce from oversold.
Looking to potential setups, Sabre Holdings
(
TSG |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks like it has the potential to resume its downtrend out
of a Trend Pivot Pullback.
Trend Fighter Is Now A Trend Follower?
“Trend Fighter” is a (well-educated) friend of
mine who has been fighting this bear market for the last two years. We spoke
today after the close. He “now realizes how brutal bear markets can
be” and “how even value is sold without mercy.” Trends exist as
long as people fight them. When the last trend-fighter throws in the towel, the
market will bottom. Trend-Fighter’s conversion puts us one small step closer.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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