No Position Is A Position
On Thursday, the Nasdaq open slightly lower, sold off, rallied and then sold off again. In other words, it was all over the place
(e.g., CHOPPY). This action has it closing poorly.
The S&P also sold off to close poorly.
So what do we do? Obviously, the market became more
oversold on Thursday as Wednesday’s “covering rally” failed to follow
through. This action leaves us very oversold. However, as you know, very
oversold can become even more oversold. On the other hand (I know, give me a one
handed analyst), there still exists the potential for the mother-of-all short
covering rallies. So, this leaves us with a damned if you do and damned if you
don’t environment. If you buy, oversold will become more oversold. And of
course, if you sell short, it’ll bounce. Therefore, I think you might just want
to take care of what you already have for now.
No setups tonight. Continue to wait for the situation to
develop. Remember, “no position” is a position*.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Or as Rush (the band, not the fat guy) once
said, “If you choose not to decide, you still have made a choice.”
“….I want to personally thank you for writing such a detailed and informative book.It has opened my eyes to a new world of trading…..”
MD
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