Wait For Your Next Pitch
On Wednesday, the Nasdaq bounced slightly on the open but
then resumed Tuesday’s downtrend. It did manage to bounce going into the close
but still closed poorly.
The S&P also sold off to close poorly. This action puts
it below its 50- and 200-day moving averages.
Notice how far the 1180 resistance is away from current
levels. The market could bounce quite a bit and still not be past resistance.
So what do we do? We are beginning to get oversold in here.
This, combined with the fact that market timing signals should kick in within the
next few days, suggests that there may be a bounce play (and I emphasize bounce)
soon.
Once again, I had difficulty finding any meaningful setups.
Several of you have agreed with me so I know I not crazy (OK, that’s subject to
debate). I think the best thing to do is to be patient and to wait for your next
pitch. If oil/oil service, gold, defense and to a lesser extent consumer-non
durables show signs of resuming their uptrends, then we should have plenty longs
setting up there. On the short side, various technology sectors seems to be
following the Nasdaq lower. These too could set up after a bounce. And,
let’s not forget about the homebuilders which appear to have topped. So again, I
think waiting for the stocks to come to you is probably your best action.
Email Of The Day
“Didn’t fool me. I knew you were full of sheep!”
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…….excellent….I enjoyed the chapter on trader’s psychology…..”
Ricardo A.
Portugal
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