No Follow Through
On Friday the Nasdaq opened lower, but soon began to trade
higher. However, it found its morning high fairly quickly and chopped back and
forth for the rest of the day. It did manage to close well though.
The S&P also had a choppy day, but it too was able close
well.
So what do we do? Based on Wednesday and Thursday’s action,
it sure felt like we were rolling back over. However, Friday’s thin and choppy
action puts me back in the “wait for opportunities” camp. True, the
longer-term trend still remains down, but the indices, other than some back and
forth gyrations, haven’t really gone anywhere in quite a while. I’m wondering if
I’ll have to start drawing sideways arrows soon. Considering the above, I
think the best course of action is no action — wait for opportunities.
Looking ahead, the semis could set up again soon (judging
from e-mails, it appears that many of you are already positioned here) and the
banks appear to be rolling over.
No setups tonight (Friday).
Best of luck with
your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!