Wait And See
On Thursday, the Nasdaq rallied in early trading to trade above the well
watched 2100 level. Unfortunately, it found its high around mid-day and then
sold off hard for the remainder of the day. This has it dropping all the way to
near the bottom of its trading range.
The S&P also sold off hard. This action gives back its
all of its recent breakout and then some.
The semis rallied sharply earlier in the day before
reversing to close flat.
So what do we do? It sure looked like the
semis were going to lead us to the promised land (2100 in the Naz) but, as you
know, they didn’t. This action here and in the market in general is disappointing,
to say the least. Even the commodity related areas, which have been a safe haven
lately, gave back most all of their earlier gains. Thursday’s action puts the
indices at an inflection point. If they turn back up and make new highs, then the uptrend remains intact. If they take out the bottom of their trading ranges, it
would create overhead resistance and suggest at top. For now, we’re back in wait-and-see mode.
No setups tonight. If you took recently mentioned stocks
such as LCAV, make sure you have taken partial profits and have trailed your
stops higher.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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