How I Feel About Friday And Why It Doesn’t Matter
On Thursday, the Nasdaq rallied in early trading, pulled
back deeply around mid-day, and then traded back and forth for the remainder of
the day. Although it wasn’t able to make it back to new intra-day highs, it
still managed to close fairly well and tack on an impressive 20+ points. This
action puts it right at its 50-day moving average.Â
The S&P put in a similar performance. It too is now
right at its 50-day moving average. Â
So what do we do? Recent sell signals (OSS
and TRIN Reversal) combined with an even more overbought situation suggests that
the indices remain due to correct. Therefore, I still believe that buying at
this juncture is not prudent. True, overbought can always become even
more overbought. However, there’s no need to buy when the odds are stacked
against you. Therefore, continue to focus on the short side, but due to recent
strength, make sure you wait for confirmation in the indices, representative
sectors, and the stock itself. At the least, make sure you wait for entries. Now
that I’ve put my thoughts down, it really doesn’t matter how I feel about the
market for Friday. It will likely be held hostage by the most highly
anticipated Jobs Report (in my recent memory) due to be released in the A.M. So,
exercise a little caution. And, if the Jobs Report swings the market in your
favor, make sure you “let ’em have it” (take some profits off the
table).
Looking to potential setups, for the aggressive, Arrhythmia
Research Technology
(
HRT |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, looks poised to
continue its slide out of a pullback
from lows.
Best of luck with your trading on Friday!
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.
*See archives. Also of note is that there was a Trin Reversal sell
signal on Tuesday.
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