I’m Baaaaaack
On Tuesday, the Nasdaq lapped lower and worked its way
lower throughout the day. This action has it closing poorly and back below its
50-day moving average.
The S&P also sold off to close poorly.
As you likely know, I look at a lot of factors each
night. These include overbought/oversold indicators (e.g., advance/decline
readings, the McClellan Oscillator, three-day average NYSE TRIN readings),
sentiment indicators (e.g., the VIX) and of course, price itself. I also study
numerous sectors and the stocks within those sectors. The whole process takes
about four hours after the close.
Last night, I was feeling pretty good about price action
and the reversion of the VIX back to average (10-day) levels. However, I was
concerned about the fact that my sectors seemed to be forming tops. This kept me
on the fence on market direction. I’m not telling you this to say that I was
right or wrong about market direction (I think I failed to call a direction). I
just figured you could benefit by knowing the factors I was considering.
So what do we do? Based on price action and the
aforementioned poor sector performance, it’s probably a good idea to continue to
keep it light.
I had difficulty finding any meaningful setups. During
these times I have learned that I’m better off managing existing positions and
not trying to make something happen that’s probably not there anyway.
Other
Yes, yesterday’s comments about becoming a sheep farmer
were an April Fool’s joke. Sorry if I pulled the wool over your eyes. If I’m
going to be fleeced, it’ll be in the markets.
E-mails Of The Day
“THEY’LL NEVER BE ANOTHER EWE!!!”
“Wool miss you!!!”
“Some guys will do anything for sex.”
“Basically, I buy sheep when they pull back. I sell half
my flock when they show a small profit and then see
where the flock they go from there.”
“So many sheep, so little time…”
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…….excellent….I enjoyed the chapter on trader’s psychology…..”
Ricardo A.
Portugal
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