Proceed With Caution
On Thursday, the Nasdaq lapped lower and chopped
its way to fresh lows. This action has it closing poorly.
Looking to a little
longer-term chart, you can see that it’s closing in on its April lows.
The S&P also had
a horrible day and is also closing in on its April lows.
So what do we do?
It’s probably too late to enter new shorts due to the severe oversold
nature of the market. The recent (and repeat) Market Bias signals
suggests that we could still get a bounce,
but the
“blue arrow” continues to point down. Therefore, for the
nimble only, look to play the bounce but only on signs of a reversal.
And, as always, wait for entries. One last point (I bet you thought I
forgot), remember, in general, if you try to buy an oversold market,
oversold will become more oversold. And, if you try to short an
oversold market, they it’ll bounce. So, whatever you do, proceed with
caution.
Looking to potential
setups, Advance PCS (ADVP)
gapped lower but reversed to close well. This action suggests that its
uptrend remains intact.
Best of luck with
your trading on Friday!
P.S. Reminder: Protective stops on
every trade!
I look forward to meeting you in four weeks at TM2001.
Don’t hesitate to register, because in addition
to showing you every
important variation on pullback setups, I’ll also be teaching you my
favorite new techniques including: how to capture trends before
the crowd using “transition in trend” patterns
and how to ride huge momentum off false moves…both
to the long and short side.
“…Dear
Mr. Landry,
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Pablo C.
Argentina
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