Exactly How I Feel About Wednesday
Looking to the indices, on Wednesday, the Nasdaq opened
firmer but quickly found its high and sold off hard for a solid trend day down.
The S&P also sold off hard for a solid trend day down.
This action puts it below recent breakout levels, has it closing poorly, and has
it approaching its 50-day moving average.
Looking to the sectors, the selling was wide spread.
Virtually all areas finished lower. Even those few that traded higher such as
the homebuilders finished well off their highs. As one would expect, Wednesday’s
sell off puts those questionable areas mentioned recently (see archives)
back in trouble. These include the semis, retail, telecom, and cyclicals.
Biotech, which was hit extremely hard on Wednesday, looks like its joining in
the fray.
So what do we do? This sucks! On Tuesday the
market traded higher to fill its gap down. This action suggested that all was
clear. And then, we get slammed on Wednesday. Looks like I picked the wrong week
to be a momentum based swing trader. I’m not sure there’s anything to do just
yet other than the obvious of honoring your stops. If the market continues to
slide then we could start seeing some transitional setups (shorts).
No setups tonight.
Housekeeping
For some reason, a lot of emails have been returned lately.
If you sent me an email more than a week ago and have not heard back from me,
please re-send or better yet, re-send with an alternate address.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….I just finished reading your book for the 3rd
time…the book has paid for itself trade after trade…thanks for a straightforward
swing trading manual! …”
Steve T.
