Is This Anything?
On Thursday, the Nasdaq opened flat and began to chop
around. Then, early in the afternoon, it rallied nicely. This action has it
closing well.
The S&P also had a late-afternoon rally after chopping
around.
So what do we do? I have to admit, the indices are
beginning to shape up. So far, they have made a higher bottom and are closer to
their 50-day moving averages than they have been in a long time. The sector
action, with the exception of the semis (see below), seems to be improving too
My only concern is that the market seems choppier as of late. It’s really
beginning to feel like summer. Therefore, I think the best thing to do is to
tread lightly and let the situation develop.
Looking to potential setups, the semis have performed
poorly on a relative basis as of late. This action sets up a pullback
from lows. Look for shorting opportunities here but wait for entries since they
did manage to close well.
Other
Due to my appearance at the Online Traders Expo, I will not
be publishing a column on Friday and Monday.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!