Three Reasons Why You Should Do What Most Of Wall Street Is Doing This Week
Hey Dave, You Said You’d Eat Your Hat And Then You
Disappeared. What up?
I was on vacation–canoeing, fishing, and hiking the Boundary Waters of Northern
MN/Canada. I’m still going to eat my hat because Google
(
GOOG |
Quote |
Chart |
News |
PowerRating) traded
above it’s first day of trading high (although it has been mostly dropping
since). The webcast will be on Wednesday, September 1st at 12:00 EST. The
link will be published in Tuesday’s column.
On Monday, the Nasdaq sold off hard in early trading. It
bounced late in the morning and then traded sideways throughout mid-day before
resuming its sell off late in the day.
This action has it closing poorly.
Ditto for the Ps. This action has them stalling out
near their early August highs/200-day moving average.
In the sectors, today notwithstanding, things have been
generally improving. Interest sensitive areas such as real estate, banks,
and financials have been doing well. The brokers appear to have put in a bottom.
Retail appears to be trying to make a transition higher. Major drugs and biotech
also appear to be trying to make a transition higher. One the downside, tech
areas such the semis and software remain in downtrends.
So what do we do? Based on the (overall)
recent sector action, I was beginning to feel more positive towards the market.
However, with Monday’s sell-off, I’m now wondering if the longer-term downtrend
remains intact. A few other things also concern me: One, the volume is light as
traders appear to be trying to squeeze in a vacation before summer ends (Labor Day is the
“official” end of summer from a trader’s perspective). Two, the market
will likely be a little skittish until the Republican National Convention is
over. And finally, it’s virtually impossible for me to find decent setups.
Considering the above, now may be the time to join in with the rest of Wall
Street and take a few days off.
No setups tonight.
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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