Does Bush’s Victory Give Us An All-Clear?
On Wednesday, the Nasdaq gapped open but soon found its
high and then generally chopped its way sideways-to-lower for the remainder of
the day. Â
The S&P rallied in early trading but then also
generally chopped sideways to lower for the remainder of the day. It did manage
to hang on to more of its gains though.Â
So what do we do? I wish I could tell
you that Wednesday’s action gives us the “all-clear” but I can’t. The
fact that the market couldn’t hold on to its initial euphoria is concerning.
This action is especially true on an individual sector basis. Considering the
above, continue to wait for a decisive breakout followed by an orderly
pullback before looking to get long. For the aggressive, look for contra-trend
shorting opportunity in the index shares but only if they show continued
reversing action.
No setups tonight. Â
Best of luck with your trading on Thursday!Â
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
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