Still Waiting For Better Days
On Thursday, the Nasdaq opened flat and began to rally.
However, it found its high early on and began to sell off.Â
This action leaves a “tail” higher and has the
index closing poorly.
The S&P traded only
marginally higher before reversing.
So what do we do? The market
remains difficult to call. Wednesday’s late day reversal suggested that we would
bounce coming into Thursday. And, we did–somewhat. However, as you know, this
failed to hold. This poor action reminds me that a) we remain in a bear market
(as does my sticky notes on my quote monitors) and b) that the market remains
choppy as the summer comes to an end. Once again, it’s difficult to find decent
setups. So, I guess the best thing to do is to continue to wait for better days.
Looking to potential setups, Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating) looks
poised to continue its meltdown out of a Bow Tie.
On the short side, Western
Wireless
(
WWCA |
Quote |
Chart |
News |
PowerRating), mentioned Wednesday night, still looks vulnerable.
The World’s Worst Teacher
A
friend of mine recently bought a stock that was in a solid downtrend. To his
delight, he caught the exact bottom. And, the stock has gone straight up
since his purchase. I tried to explain to him that the market was teaching him a
bad lesson. However, based on the excitement in his voice, I’m afraid he wasn’t
listening.Â
Don’t
pick bottoms–you might occasionally get lucky but, I can guarantee you, over
the long run, it’s a loser’s game.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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Larry P.
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