Continue To Look To Get Long As The Indices Continue To Pull Back
On Thursday, the Nasdaq opened weaker but quickly found its
low and began to rally. However, it topped out early in the morning and began to
sell off again. It then chopped and drifted mostly sideways for the remainder of
the day. This action has it closing poorly.
The S&P put in a similar performance.
So what do we do? So far, the action in the indices only appears to be
corrective–just enough to scare a few bulls and attract a few bears. This
type of action is healthy. Therefore, continue to focus on the long side but
wait for entries as long as we remain in corrective mode.
Looking to potential setups, Education Management
(
EDMC |
Quote |
Chart |
News |
PowerRating),
mentioned Wednesday night and in the strong education & training services sector,
still looks like it has the potential to continue its strong uptrend out
of a pullback.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….. Your idea about the MAs narrowing, crossing and setting up in proper order sure is a good one. It makes flipping through charts a piece of cake; another great idea from your marvelous book….”
Grant C.Â
Â
