More Evidence Of Why You Should Use The News To Your Advantage
On Friday, the Nasdaq gapped lower with the rest of the
indices on an abysmal jobs report. However, it quickly reversed and began to
rally. And, aside from some news bumps (I think they captured Bin Laden’s dog or
something), generally worked its way higher until early afternoon. It then sold
off but began to rally once again late in the day.
This action has it closing well, in the plus column and
back into its trading range. The top of
this
trading range, which also corresponds with its 50-day moving average/200-day moving
average, could provide resistance.
The had a similar day.
This action keeps it too in a trading range. The top of
its trading range here/50-day moving average (which will be there soon) could
provide resistance.
So what do we do? The fact that the indices tested the
bottom of their trading ranges and reversed to close well suggests that we are
now in bounce mode. However, I see no reason to get excited about the markets
just yet. So far, all this does is put us right back into a trading
range. Therefore, probably the best thing to do is to continue to trail
stops/look to take profits on shorts.
No setups tonight.
Continue To Use The News
Friday was a good example of why you should continue to use
news to your advantage. After the horrible jobs report, you could almost hear
the towels being thrown in as the last of the longs gave up. So, if you were
short (which as trend followers, I assume you were), right when you’re feeling
good* is right when you should be looking to take some profits.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
P.P.S. FYI, 6 and 12-month trading service
subscriptions (including upgrades) are 10% off through March 12th.
*Reminds
me of the Jen Trynin song, “Better Than Nothing”. Maybe we can have a
trivia contest on that later in the week….
“….It was super book and helped me quite a bit orchestrate many of the individual tools and rules I had been reading about into an integrated trading strategy. Anyhow, thanks for great book and great web
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Marty
