Rollover Or Back To Chop?
On Wednesday, the Nasdaq gapped lower and initially
continued lower. Then, after chopping sideways, it rallied for most of the
day. However, it sold off going into the close.
The S&P put in a similar performance.
So what do we do? The intraday volatility is frustrating.
The fact that we did not follow through after breaking below the recent trading
range puts me back in wait-and-see mode. I’m generally still bearish, but not
willing to bet too much until this market can show some conviction. Therefore,
on the short side, continue to focus on those sectors that appear to be rolling
over, such as the banks and utilities (today notwithstanding). And on the long
side, stick with issues such as gold and defense that can trade contra to the
indices. Above all, though, stay defensive and wait for better opportunities.
No setups tonight.
Smoke ’em If You Got ’em
Varian Semiconductor
(
VSEA |
Quote |
Chart |
News |
PowerRating) has moved nicely since first mentioned
(a). When blessed with such a nice, quick profit, make sure you lock in a piece
and trail a stop on the remainder.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!