The Secret To Any Methodology
On Friday, the Nasdaq lapped lower, bounced, but then
quickly found its high and began to sell off. It found its low near mid-day and
then chopped back and forth for the remainder of the day. This action has it
closing poorly.
Recent highs (circa 1875)/the 50-day moving average are
minor resistance.
The S&P put in a somewhat similar performance.
So far, it remains above its 200-day moving average.Â
So what do we do? I was hoping that we would
get a nice news reversal on the dismal Intel update. Well, I guess you know
which hand gets filled first when you hope in one hand and …. (the editor is
on vacation, I don’t want to give his assistant a heart attack). Seriously, you
have to believe in what you see (and not in what you hope or believe). Friday’s
performance is disappointing. It puts many tech sectors back into question. I
suppose the silver lining is that there are some areas such as the financials
and retail that remain constructive. In situations like this when I’m not
getting a clear signal, I lean on my database to tell me what to do. And
tonight, I couldn’t find a setup to save my life. In times like these, I’ve
learned to stand aside. Hopefully, (am I hoping again?) traders will return
rested, happy, and ready to buy next week.Â
As mentioned above, there were no meaningful setups. Remain
patient. The secret to any methodology is not trading in less than ideal
conditions.Â
Best of luck with your trading on Tuesday!Â
Happy Labor Day! (and to those outside the U.S. happy
Monday!)
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.
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