My Favorite Indicator For Determining Trend
I’m Dave Landry and I approved this column.Â
As promised Tuesday night, below is my favorite indicator
for determining trend. I call it the “big blue arrow.”
On Wednesday, the Nasdaq opened weak and sold off for a
solid trend day lower. This action has it closing poorly and puts it at
support—near last week’s highs. So far it remains above its 50-day moving
average.Â
The S&P put in a somewhat similar performance but
wasn’t hit nearly as hard. It remains resistance, circa 1150-1160.Â
So far, the S&P still looks constructive. However, the
Nasdaq has now given back all of this week’s gains. This action suggests that
the breakout could have been a false one. Within tech-land itself, many areas
sold off especially hard. For instance, biotech and the semis lost twice as much
as the Nasdaq on a percentage basis. This action takes most of tech off the
watch list for now.
^next^
So what do we do?  The bottom line is,
since the market is stalling after just trying to break out, continuing to sit
on our hands could remain the best course of action. This isn’t a hard decision
for me since finding decent setups (especially with confirming sector action)
remains difficult. One last supporting point (for not trading), trading will
likely be then ahead of the long weekend, especially as the day wears on.
Therefore, no matter what you do, you probably want to exercise caution.Â
No setups tonight.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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more, or to order.