More Ideas On Where To Trade While The Market Remains In A Trading Range
On Friday, the Nasdaq opened lower on a punk jobs report
(don’t worry, it’ll be revised next month) but quickly found its low and began
to rally sharply. However, it soon found its high and began to sell off. After
retracing the .786 retracement of the its morning rally (at around mid-day), it
then chopped its way back and forth for the rest of the day.Â
This puts the index back below its 50-day moving average
and keeps it in a trading range/below overhead resistance. Â
The S&P, put in a similar performance.
This action has it hitting one year plus highs but failing
to close there.
So what do we do?  The stalling out of
the S&P after hitting new highs keeps it in trading range mode. Therefore,
there really isn’t much to say that I haven’t already said lately: Continue to focus on strong
commodity related stocks that can trade contra to the
indices. The energies remain the strongest here. Outside of that, you probably
want to continue to trade at reduced size and stick with stronger sectors. These
include selected retail
(e.g. department stores), gaming, insurance, biotech, and selected health services. Â
Looking to potential setups, Nabors Industries
(
NBR |
Quote |
Chart |
News |
PowerRating), in the
aforementioned strong energy sector, looks like it has the potential to resume
its strong uptrend out of a pullback.Â
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here for details.
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