The Markets Will Always Be There
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On Tuesday, the Nasdaq popped up on the Oracle
earnings news, but quickly found its high. It then sold off to close
poorly.
Tuesday’s poor performance puts the index right
back at important support zones. Once again, if we don’t stabilize in
here, the April lows could be a possibility.
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The S&P also
continues to hover near minor support. A break below 1200 could
suggest a trip to the April lows here too.
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So what do we do? The indices look like they are
in trouble. Keep in mind, though, we remain oversold and due for a
bounce. With that said, nibble on the short side.
There’s not too much to look at again tonight. I
am beginning to see a few shorts setting up, though. We will likely
have more and more setups here as the market bounces.
Analog Devices (ADI)
looks like it has the potential to break down out an inverted cup and
handle–like formation/Bow Tie.
Veritas Software (VTAS)
also looks poised to break down out of a topping formation/Bow Tie.
The Markets Will
Always Be There
This morning I
received a few emails from those complaining because they missed the
overnight rally. I don’t know for sure, but I assume that some of
these people “gave in” and jumped in on the open for fear of
being left behind. Don’t ever feel like you are missing something in
the markets, especially on euphoric openings and when the overall
market is vulnerable. When you find yourself in this situation,
sit back and observe. You might just learn something (and save some
hard earned cash!). I don’t know about you, but I plan on trading for
many years to come. I’m willing to sit on my hands now and then.Â
Do I miss opportunities? As my friends in Fargo say: “You
bet-cha!”
I
also “miss out” on many bad markets. The
markets will always be there.
Best of luck with
your trading on Wednesday!
Dave Landry
Questions? Comments?
Drop me a line at sentivetradingco@prodigy.net
P.S. Reminder: Protective stops on
every trade!
“…I
would like to thank you for your excellent book. After reading it, I
said wow.. Finally, there is light in the tunnel!…..
Dan S.
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