Market Remains Vulnerable

On Wednesday, the Nasdaq gapped higher but began to slide. It found its morning low fairly quickly and began to work its way higher throughout the day. However, it found its
high by mid-afternoon and sold off to close poorly. Once again, this action has it
closing
at 3-month lows and below the recently mentioned 1320 support level. 

The S&P also sold off after tailing higher. It remains
below its recent breakdown levels and is now at the bottom of its more recent
trading range. 

So what do we do? Nothing much has changed. The market
remains choppy and vulnerable. Further, the selling (recent and longer-term), is
broad based–across numerous sectors (see
Tuesday’s commentary for more details
). Therefore, once again, the obvious play is to
continue to focus on the short side. However, I still see no need to get too
aggressive just yet based on the recent choppy action and the fact that we
remain in an event driven environment.  

No setups tonight.

Best of luck with your trading on Thursday!

Dave Landry

dave@davelandry.com

P.S. Reminder: Protective stops on
every trade!

“…. Great book, clear and concise….”

Jerry

 

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