Until This Situation Is Resolved, Continue To Exercise Caution
I’m Dave Landry and I approved this column.Â
On Monday, the Nasdaq opened firmer but quickly found its
high. It worked its way lower until mid-day. It then traded traded sideways to
higher for the remainder of the day.Â
This action keeps it below minor resistance/its 200-day moving
average and in a short-term trading range.Â
The S&P rallied early but gave back much of its morning
gains. It too remains stuck in a short-term trading range.Â
So what do we do? The market still remains in
a downtrend, most sectors remain in downtrends, and most stocks remain in
downtrends. However, the recent sideways chop is annoying and frustrating for
the momentum based trader. Therefore, continue
to look to play the short side but keep positions on the small side until the market
breaks out of its trading range.Â
As far as setups, once again, aggressive traders may want to take a
look at Onyx Pharmaceuticals
(
ONXX |
Quote |
Chart |
News |
PowerRating)Â in the weak biotech sector. It
still looks poised to resume it sharp side out of a First Thrust (as
usual, email me if you need rules to this or anything mentioned in this
column).Â
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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more, or to order.