Continue To Remain Patient
On Thursday, the Nasdaq opened lower and initial sold
off.
However, it found its low in early trading an generally worked its way higher
for most of the day. This action has it closing fairly well.
The S&P put in a similar performance.
So what do we do? Nothing much has changed. The
market closing up yet again is keeping it overbought. This is confirmed by short-term average
advance/decline readings and longer-term readings (e.g., McClellan Oscillator).
Further, on Thursday we have a repeat TRIN Reversal sell signal (as usual, email
me if you need the rules). Considering the above, use caution should you decide
you to play the long side. For now, I think the best advice for those anxious to
get long is to remain patient. Sectors such as Internet, retail, biotech,
selected drugs and to a lesser extent software could set up soon.
No setups tonight.
Hey Dave
When are you gonna get bullish?
Isn’t the market going up?
I can’t get bullish while the indices are so overbought.
Once I see some corrective action (or even a sideways consolidation), I might
begin to change my mind.
FYI, my video
is now 10% off.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….Nice call on the index shares Wednesday. I got half the move. Paid for your book 50 times over…”
Sean G.
