Transition In Tech Or Continuation?
Tuesday’s reversal, combined with the
late-breaking Intel news, suggests that technology will continue its rally from
lows, at least early on, versus resuming its longer-term downtrend. This action
suggests that the market is either in transition mode or will reverse and resume
its downtrend on the next bad news. I suppose what I’m trying to say is that I
don’t have a read on it. Therefore, keep positions light regardless of what side
you trade until the picture begins to clear.
For you
OEX traders, the VIX, mentioned remains stretched to the downside and will
likely continue to drop early on based on the Intel news. Continue to watch for strategies which seek to capitalize on
an increase in volatility.
Best of
luck with your trading on Wednesday!
P.S. Reminder:
Protective stops on every trade!