Take A Vacation
On Wednesday, the Nasdaq gapped lower and pretty much
chopped its way lower throughout the day.
Ditto for the S&P.
So what do we do? I have to admit, I seriously thought
about taking the next few days off. In fact, if it wasn’t for my obligations
(end of month) on the managed side of my business, I probably would have. This
poor pre-holiday action is disappointing to say the least. All three indices are
now trading below their 50-day moving
averages. Most sectors are also performing poorly: Many broke out of the bottom
of their recent trading ranges, dipped back below their 50-day moving averages
or generally look (unless there is a serious turnaround) like they will return
to their summer lows.
Considering the above, if you haven’t already done
so, now might be a good
time to start thinking about getting a head start on the Labor Day holiday.
No setups tonight.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!