If You Are A Momentum Trader, Here’s What To Do In A Sideways Market
On Wednesday, the Nasdaq dipped in early trading but soon
found its low and began to rally. Then, after going sideways in late afternoon
trading, it rallied again going into the close.
This action has it closing well.
The S&P tailed down below its September lows but
reversed to close back above them.
So what do we do? The fact that he S&P
held its September lows is, to quote inmate number 55170-054, “a good
thing.” However, I remained disappointed in the sector action. Most are
either stalling short of their old highs or like the market itself,
trading mostly sideways. In these situations, I let my scans tell me if there is
something worthwhile. And tonight, I couldn’t find a decent setup to save my
life. Therefore, wait for the market and sectors to break out of their trading
ranges before looking to establish new trades.Â
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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