There’s No Need For Concern, Yet
Looking to the indices, on Tuesday, the Nasdaq chopped its
way slightly higher but found its high in early afternoon trading. It then sold
off going into the close. This action has it stalling at its old highs.
The S&P put in a somewhat similar intra-day
performance. So far though, it remains above Monday’s breakout levels.
So what do we do? I’m somewhat
concerned about the fact that the Nasdaq and Dow are stalling near their old
highs. However, so far, they really haven’t done anything “wrong.”
Maybe they just need a “running start” to break through those highs?
The “pause that refreshes?” (I’m tired today, that’s the best I could
come up with.) As I look to the sectors, so far, the action remains positive for
most. Some areas, such as semis, are bumping up against their old highs.
Ideally, I’d like to see some sort of decisive breakout here. Overall though, I
think the market remains constructive
On the long side, if you played recent pullbacks (e.g. ZMH,
GG, mentioned recently), continue to look to take profits and trail a stop
higher.
On the short side, there may be some opportunities in
(selected) weaker financials. However, you might want to keep it light here as
long as the overall market continues “hang in there.”
No setups tonight. If these levels continue to hold,
we should start seeing pullbacks setting up soon.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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