Buy The Market — But Only If It Does This
On Wednesday, the Nasdaq opened weak
but soon began to
rally. However, it found its high in early trading and generally worked its way
lower for the remainder of the day.
It appears to be forming a short-term trading range. The recent highs (circa
1875)/50-day moving average remain
minor resistance here.
The S&P put in a somewhat similar performance.
So far, it remains above its 200-day moving average.
So what do we do? The failure of the market to
follow through is disappointing. However, so far, it really hasn’t done anything
“wrong” either. Most sectors, less technology, continue to hang in
there. Hopefully (am I hoping again?), it’ll break out decisively soon. And if
it does, I will
then look to get long on a pullback. Until then, keep it light or avoid trading
altogether.
As far as setups (considering the above warning), Intuitive Surgical
(
ISRG |
Quote |
Chart |
News |
PowerRating) looks like
it has the potential to resume its recent breakout/uptrend out of a Trend
Knockout (TKO). Wait for an entry though, since the stock was down fairly hard
on Wednesday.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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