Manage Existing Positions
On Wednesday, the Nasdaq opened weaker and after a brief
blip up, generally worked its way lower throughout the day. This action negates
most of this week’s gains so far and puts the index back to its 50-day moving
average.
Ditto for the S&P.
So what do we do? The magnitude of Wednesday’s move
negates most of the shorts that were recently setting up in areas such as biotech (see
IBB chart below). Further, it also makes it too late in the cycle to establish
new swing shorts in the index shares. Therefore, manage existing positions:
trail stops and look to take profits.
There were no meaningful setups tonight.Â
If Myriad Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating) continues to follow through,
I will do a money management/position management walk through.Â
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….Your idea about the MAs narrowing, crossing and setting up in proper order sure is a good one. It makes flipping through charts a piece of cake; another great idea from your marvelous book.
Grant C.
