Bitten By The Fly In The Ointment
On Tuesday, the Nasdaq open firmer but quickly sold off.
Then, after some mid-day drifting, resumed its sell off for a solid trend day
lower.
The S&P also sold off to close poorly.
So what do we do? On Monday night, I was starting to feel
better about the indices and many sectors. The only “fly in the
ointment” (thanks for the cliché, Joe) was that we were stuck in thin,
pre-holiday late-summer trading. Well, on Tuesday, it looks like we got bitten
by the fly in the ointment. The Nasdaq is now back below its 50-day moving
average and the Dow and S&P are right at it. Further, it negates a lot of
the positive sector action, since many sectors are now back to the bottom of
their recent trading ranges, below their 50-day moving averages and/or back to
their recent breakout levels. Considering the above, I think now might be a good
time to start thinking about getting a head start on the Labor Day holiday.
No setups tonight.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!