The Big Blue Arrow
On Thursday, the Nasdaq gapped lower and continued lower in
early trading. Then after chopping sideways for most of the day, it resumed its
sell off going into the close. This action has it closing poorly.
The S&P also sold off to close poorly.
So what do we do? The fact that the indices followed
through from Wednesday’s reversal suggests that they are indeed headed back in
the direction of the big blue arrow. As such, the September (5th) lows and quite
possibly the August lows are targets. Therefore, continue to focus on the short
side or only consider sectors such as the golds that can trade contra to the
indices.
Looking to potential setups, biotech appears to be rolling
back over out of a Bow Tie/First Thrust like formation.
Considering the above, Myriad Genetics
(
MYGN |
Quote |
Chart |
News |
PowerRating) appears
to be resuming its downtrend out of a pullback(a). FYI, check out the nice sell off
out of the recent “textbook” Bow Tie (b).
Email Of The Day, No Year
Dave,
You are the greatest! After over a week of saying there were no setups, you told us last night that gold was setting up long and semis were setting up short.
I am short KLAC and long AU, and I am one happy camper this afternoon.
I think your book is a masterpiece, and it is destined to become a classic. The ideas are presented clearly and precisely, in your unique
Louisiana style. You give enough meat on the bones so that the reader can adapt the ideas to his own preferred approach to selecting and closing out trades. Best of all, you recognize that you are only human, and your methods can work most of the time, but they will have their off days, too.
Best wishes to you and your family for a wonderful year ahead in the markets. Thanks for helping me to make some money.
Steve F.
Seattle
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!