Wait For This Before Establishing New Short Positions
On Wednesday, the Nasdaq opened weaker and after a blip up,
began to sell off. It found its low around mid-day, drifted in early afternoon
trading, and then put in an impressive late-day rally. This action has it ending
just about where it started.
The S&P put in a similar performance but did manage to
finish (slightly) in the plus column.
So what do we do? There really isn’t
anything new to say. The market remains in a persistent downtrend (see the
archive from
Tuesday night for how I determine trend). However, it remains
oversold at these levels. Therefore, you probably want to wait for a
bounce before looking to establish new positions on the short side.
No setups tonight. On the next pullback, we will likely see
a plethora of shorts setting up.
FYI, I’ll continue follow up on recently mentioned shorts
such as Amazon
(
AMZN |
Quote |
Chart |
News |
PowerRating) and Mercury Interactive
(
MERQ |
Quote |
Chart |
News |
PowerRating) soon.
Best of luck with your trading on Thursday!
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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