The $64,000 Question
On Thursday, the Nasdaq chopped around in a narrow range
and then closed slightly higher.
The S&P grinded lower for a modest loss.
So what do we do? The
$64,000 question remains “are we still in a bear market?” Well, I’m
not smart enough to call a bottom, so I look to something simple like the 50-day
moving average. And so far, the market can’t seem to get above it and stabilize.
So, for now, I guess the answer is yes, we remain in a bear market. At least
that’s what the sticky note on my quote monitor says. Therefore, keep an eye out
for shorts. On the long side, stick with the strongest issues and/or those that
can trade contra to the market. Drugs and defense issues fit this description.
And hey, keep it light and honor your stops.
Looking to potential setups, Raytheon
(
RTN |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still looks like has the potential to rally out of a pullback. If you
are looking for other plays in the defense issues, there still are a few issues
set up on the Pullbacks
Off Highs List,
On the short side, Americredit
(
ACF |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night, still looks vulnerable.
Other
As you may know, the VIX is one of my favorite indicators
that I use to help keep me on the right side of the market. Therefore, I’m
pleased to announce that Larry and my friend/college Greg Che have released
their latest research in their manual Trading
Connors VIX Reversals.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“..It is clearly the best
book on swing trading currently in the public domain….”
Stanley O.
No risk,
30-day, money back guarantee.
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