Leave Your Opinion At The Door

  • September 6, 2001
  • Eddie Kwong

Despite today’s action, the long-term trading support on the
(
SPX |
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PowerRating) and
(
NDX |
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PowerRating) I
mentioned yesterday does not appear to be broken. Still, this downside momentum
is sending the message “Respect me!”

So like I said yesterday, we keep an open mind to either direction.

You must not only be nimble as a trader, but also mentally nimble — meaning
don’t get locked into an opinion.

Stocks showing strength under adverse market conditions are certainly
encouraging. Take a look at Sherwin Williams. The stock broke convincingly
above its 200-day moving average and closed near the high of the day on very
heavy volume. This, as the S&P 500 closed near its lows. 

Why do I mention this? Well let’s just say you want to keep a
lineup of bullish ducks as well as bearish ones. The prevailing direction of
the market tells you which way to shoot.

Eddie

 

 

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