That’s My Story And I’m Sticking To It
On Thursday, the Nasdaq chopped around in a narrow range.
It closed poorly and remains below its 50- and 200-day moving
averages.
The S&P also chopped in a narrow range but was more
constructive. It managed to stay above Wednesday’s low and above its 200-day
moving average. 1180 remains a resistance level here.
So what do we do? The fact that the market didn’t follow
through from Wednesday’s sell off is a positive. However, the fact that the
indices remain below resistance, combined with low VIX readings, is keeping me
cautious. So, at the risk of boring you to death, I think I’m going to stick to
my story: Continue
to play chicken. As mentioned recently, this means sticking with issues that have
outperformed the market before the recent run up and have had
orderly corrections as of late. These include defense, consumer
non-durable, homebuilders and gaming-resorts.
Looking to potential setups, Mandalay Resort Group
(
MBG |
Quote |
Chart |
News |
PowerRating),
mentioned recently as a Trend Pivot Pullback, tailed lower (a) but reversed to
close well. This action may have knocked out the weak hands and suggests that
the stock still has the potential to resume its uptrend, especially if it can take out
last Friday’s pivot high (b).
Other
I promise to do some more “walk throughs” as soon
as something mentioned recently gets going (maybe
(
LLL |
Quote |
Chart |
News |
PowerRating)?).
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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