The Only Sector Still Worth Shorting
On Monday, the Nasdaq traded back-and-forth in a narrow
range. It finished on its lows.
This action keeps it at new lows for the year. Â Â
The S&P also traded back-and-forth in a narrow range.
It too sold off going into the close.
Monday was thin, choppy, and narrow–not unusual for the
day before a Fed announcement. One item of interest was the fact that the market slid
going into the close. This action suggests that traders were not willing to
“take ’em home.”Â
So what do we do? Since the majority of
sectors are oversold, focus on areas that are in the early phases of breaking
down from higher levels. At the present, the energies are the only ones that
qualify here. Should we have some sort of of “washout” (gap sharply
lower) on the open, aggressive traders might want to watch for an early morning
reversal. For everyone else, use this as an opportunity to take additional
profits and trail stops lower on existing positions.Â
No setups tonight.Â
Best of luck with your trading on Tuesday!
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..Â
Â
Â
Â