S&P Hits Multi-Year Highs, Is It Time To Buy?
On Monday, the Nasdaq worked its way lower throughout the morning. However, it
found its low by mid-day and generally worked its way higher for the remainder
of the day.
The S&P put in a similar performance. Â This action
breaks it out to multi-year highs. As Ed says, “Yeeeh, I’m gon-na tell all
my friends!!!”
So what do we do?  Lately, I have been
concerned about the lack of forward progress. In fact, on Friday, I said that I
was adopting a “show me” attitude. Well, today (Monday) I guess the
market showed me. The breakout in the S&P to multi-year highs certainly is a good start. Provided
the market follows through, we could see new
setups soon in strong areas such as software and Internet. For now, 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
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
Friday night, still looks like it has the potential to continue lower out of a First
Thrust.
Best of luck with your trading on Tuesday!Â
Dave Landry
P.S. Reminder: Protective stops on every trade!
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Ties Strategy. Click
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