Does This Change Everything?
On Friday, the Nasdaq gapped sharply higher on the
mother-of-all Jobs Reports. It quickly reversed and began to sell off. However,
it found its low fairly early and then generally worked its way higher for the
remainder of the day. This has it closing well (on its highs, in fact) and puts
it above its 50-day moving average.
The S&P wasn’t quite as impressive but did manage to
close well. This action puts it above its 50-day moving average. It also has it
right at its .786 retracement level from the 03/05 high (which also corresponds
with overhead resistance).Â
^next^
So what do we do? Well, last night I couched
my commentary by saying that the jobs report could throw a wrench
into my analysis. And, it did (to say the least!). So, the $64,000 question now
becomes, does this change everything? I don’t know. Follow through will be key.
For now, this action has the market super-duper overbought (if you’re new to this
column, my apologies for using such technical terms). And, as you now, it’s
never prudent to buy in this situation (OK, it would have worked on Thursday,
but in general, it’s usually not a good idea). If you were fortunate enough to
have some longs, take some profits off the table and then pat yourself on
the back (there’s no need to send me an email telling me that I was wrong and
you were right–just remember the sun doesn’t shine on the same dog’s ass
every day). On the short side, with the market overbought, you might look to fire
off a trade or two. However, don’t fight the stupidly strong tape–wait for
entries.
 Looking to potential setups, for the aggressive, Arrhythmia
Research Technology
(
HRT |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks poised to
continue its slide out of a pullback
from lows.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here for details.