Play With A Dead Cat?
On Thursday, the Nasdaq opened lower, probed its old lows
and then chopped around for the rest of the day. The good news is that the lows
held and it did close fairly well.
The S&P tailed lower but reversed to also close fairly
well.
So what do we do? The fact that the major indices began to
find support, combined with some buy signals beginning to kick in, suggests that
we are in bounce mode. Keep in mind that this does not mean you should run out
and bet the farm. After all, the big blue arrow is still pointing down. My point
is that it’s probably too late to establish new shorts and there may be an
opportunity to play a dead cat bounce.
Once again, there were very few meaningful setups. As
mentioned recently, this is normally a sign to stay on the sidelines. For
the aggressive, the index shares might be a way to play aforementioned potential
bounce. Just make sure you honor
your stop and are quick to take profits (if offered) since you are swimming against the tide.
Other
Tenet Health Care
(
THC |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night,
appears to be resuming its uptrend out of a Trend Pivot Pullback. If it
continues higher, I’ll use it as my next “walk through.”
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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