Still Cautious
On Tuesday, the Nasdaq opened firmer and continued to rally
for most of the day. Then, late in the day, it sold off fairly hard.
The S&P put in a similar performance. However, its
late-day sell off was much more vicious.
So what do we do? As you know, I came into Tuesday cautious
(see last night’s commentary for details). And, I have to admit, I was surprised
early in the day by the sharp market rally. However, the late-day sell off made
me feel a little better about sitting on my hands (on the long side). Therefore,
continue to keep it light until we either see continuation to the upside or a
break down below the trading range.
Looking to potential setups, Community Health Systems
(
CYH |
Quote |
Chart |
News |
PowerRating),
in the weak hospital sector, looks poised to resume its meltdown out of a
pattern I call an Explosion Gap Pivot.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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