Should You Be Buying Since The Indices Remain At Multi-Year Highs?
On Tuesday, the Nasdaq chopped its way sideways-to-higher. This action puts it
right at minor resistance. Nevertheless, it still managed to close at
multi-year highs.
The S&P also generally worked its way
sideways-to-higher. This action keeps it at multi-year highs.
So what do we do? So far, so good on the
breakout. Should the market continue to follow through and then subsequently
have an orderly pullback, we will likely see numerous setups. Until then, continue to
manage existing longs–take partial profits when offered and trail a stop higher
on the remainder. As far as new positions on the short side, the energies (and
energy related–e.g. shipping, coal) and
metals & mining still look poised to resume their recent slide out of a
First Thrust formation (as usual, email me if you need the rules).
As far as setups, Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still looks like it has the potential to continue lower out of a First
Thrust.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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