Waiting On The Big Boyz
On Friday, the Nasdaq lapped lower, but found its morning low
fairly quickly. It then rallied, but found its morning high fairly quickly, too.
It then sold off, traded sideways, rallied and finally sold off to close poorly.
In other words, it was choppy.
The S&P put in a similar performance.
So what do we do? Not much to say tonight. It was thin and
choppy — as expected for the day before a holiday. Wait until the big “boyz”
return next week before making any decisions.
No setups tonight.
Homework
For those who don’t have big plans, pull up some charts
over the weekend. Notice how many stocks were in great trends earlier in the
summer. Notice that the indices also persisted lower as did most sectors. Then
notice what they all did on pullbacks/other setups (e.g. Trend Knockouts).
Notice the follow through? Nice, huh? This atypical summer behavior is
“textbook” for the momentum-based swing trader. Now fast forward to
late summer. What do you see? Choppy, huh? Learn anything?
Enjoy your holiday and best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!