Blank Sheet
On Tuesday, the Nasdaq chopped back and forth in a narrow
range. It did manage to close well though. This action puts it near its 50-day
moving average.
The S&P also closed well after chopping around. This
action also puts it near its 50-day moving average.
So what do we do? Although Tuesday’s action puts the all of
the indices near their 50-day moving averages, I really hate to read too much
into it. Volume was light and the trading ranges were generally narrow and
choppy. Further, the potential for terrorist attacks still looms (I also don’t
think that the mood will be too upbeat on Wednesday). Also, one of my best
indicators for trading is my daily scratch pad. Tonight, as I write this column,
I look down for potential ideas. To my surprise, the page was
entirely blank. In fact, I flipped back and forth a few pages to make sure that
I was on the right page. Therefore, based on the above, I still think the best
course of action is continue to wait for the picture to clear.
No setups tonight.
FYI
The markets will open late on Wednesday, honoring the
memorial service for September 11. The Nasdaq will open at 11:00 am EST and
the NYSE will open at 11:00 EST (or later if the memorial service is not finished).
My heart goes out those who lost friends and family in the
September 11th tragedy. May God bless us all.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!