Did We Dodge A Bullet?
On Tuesday, the Nasdaq lapped higher and generally continued higher
throughout the day. This action has it pushing into overhead resistance.
The S&P put in a similar performance. It too pushed
well into its overhead resistance.
So what do we do?
I think the recent
sharp slide brought a lot of bears out of the woodwork. Tuesday’s action appears
to have punished them. This “squeeze” (being forced to exit) along
with some bottom fishers has the market pushing nicely into overhead resistance.
So far, it appears we may have dodged a bullet. However, as usual, follow
though will be key.
There were very few meaningful setups tonight. This,
combined with the fact that the market is at an inflection point suggests that
we should focus mostly on managing existing trades vs. initiating new
ones.
FYI
I will be doing my weekly audio/visual
interactive presentation on Wednesday June 29 at 11:00 Eastern Time. So far, (if I say so
myself!) I have a pretty good show planned.* In addition to current market
conditions, I will covering a host of topics including: following up on my
recent presentation on entries, discuss how to help avoid being caught in an
opening gap reversal situation, and touch upon some of the nuances of momentum
based swing trading. I also follow up on stocks mentioned recently in this
column and in my trading service. Email me if you would like instructions on how
to participate and/or if you would like the archives to this show for the last
year.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.
* Editor’s Note:
Let’s all watch and see for ourselves, shall we?
Brice