How I Determine The Path Of Least Resistance
On Monday, the Nasdaq chopped back and forth. It remains right at the 1320 support level.
Once again, if this level is broken decisively,
the October lows remain a likely target.
The S&P was also choppy. Once again, it remains below the 870
“breakdown” level. The October lows are a potential target here too.
So what do we do? Nothing much has changed. As I tool
through hundreds of charts and study dozens of sectors, an overwhelming number
look like better shorts than longs. These markets are either making transitions
(i.e. rolling over) or are in bona fide downtrends. Therefore, I still believe
that the path of least resistance appears to remain down. However, once again, the lack of follow through lately has been
frustrating. Therefore, continue to focus on the short side but keep it light.
Looking to potential setups, Scios
(
SCIO |
Quote |
Chart |
News |
PowerRating), in weak
drugs, looks poised to resume its meltdown out of a First Thrust.
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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