The Best Course Of Action For This Market
I’m Dave Landry and I approved this column.Â
On Wednesday, the Nasdaq started firmer but quickly found
its high and began to sell off. It found its low around mid-day and began to
rally. However, it sold off again going into the close. So far, it remains above
its 50-day moving average.
The S&P drifted lower in early trading, rallied in the
afternoon, but then chopped sideways going into the close. It did manage to tack
on a few points though. It too remains above its 50-day moving
average.Â
So what do we do? In general, things continue
to improve–there are quite a few sectors that are trying to make a transition
higher. My concern is that the market has been very choppy as of late. Also
notice above that the S&P close today roughly equals its close nearly
3-months ago. This sideways action is frustrating for the momentum based trader.
Further, my database continues to generate very few meaningful setups. As I’ve
preached in the past, this is normally a good sign to stand aside. With
that said, no action could be the best action for this market. Shorter-term, the
indices remain overbought so we could see some sell signals here soon.Â
As far as setups, if you must trade, Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks like it has the potential to resume its slide
out of a First Thrust (as usual, shoot me an email if you need
rules for this or any pattern mentioned in this column).Â
Best of luck with your trading on
Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here to learn
more, or to order.