Things To Do During Choppy Markets
On Tuesday, the Nasdaq lapped slightly higher but found its
high by early morning and began to sell off. Then after some mid-day drifting*,
its sell off resumed.
This action has it closing poorly and suggests that the
bounce may be over.
The S&P performed similar
to the Nasdaq: an early morning pop gave way to drifting, followed by an
afternoon sell off.
So what do we do? Tuesday’s action is disappointing. It
suggests that this market can’t even follow through on a bounce from lows.
Factor in the choppiness and it makes for a poor trading environment. Therefore,
consider a short or two but continue to keep it light (or not at all).
NPS Pharmaceuticals
(
NPSP |
Quote |
Chart |
News |
PowerRating)
looks poised to continue its downtrend out of a V-shaped inverted cup and
handle.
International Game Technology
(
IGT |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks vulnerable.
Random
Thoughts
It looks
like the 50-day moving averages in the indices will start dropping quickly to
meet the current price as higher prices are being dropped off and lower prices
are being added.
Once we get out of these choppy
summer doldrums, I promise I’ll have more examples, setups and hopefully,
something interesting to talk about.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*I left to get a haircut and when I returned, nothing had changed. On a
similar note, yesterday, a friend of mine left for lunch during Monday’s
session and thought his equipment was broke when he returned.Â
“…You have some really great material in there… and I appreciate the knowledge that you shared. There are few books out there that provide people with the tools that they really need in order to trade but this is one of them.
Nick P.
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