These Areas Are Improving-So Is It Time To Buy?
On Monday, the Nasdaq chopped back-and-forth in
narrow range trading. It did manage to end on a high note though.
The S&Ps traded in a similar fashion. Â
In the sectors, many areas have been improving as of late.
The semis appear to be making transition higher. Many other tech
areas, like the Nasdaq itself, have been trading sideways to slightly higher.
This action, so far, suggests they are bottoming (or at the least, they have loss of momentum
to the downside). Energy and shipping remain in a strong uptrends but are
getting extended. The homebuilders look like they have the potential to rally
out of a pullback.Â
So what do we do? There’s only a few areas
that are in bona fide uptrends at this juncture. Therefore, outside of those
areas, I still think its prudent to wait for follow through to the upside. On the short side,
based on general loss of momentum to the downside (i.e. choppy sideways
trading), continue to manage existing positions vs. initiating new ones.
No setups tonight, continue to trail your stops higher and look to take
profits in the energies and shipping.
Best of luck with your trading on Tuesday!Â
Dave Landry
P.S. Reminder: Protective stops on every trade!
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