What I Didn’t Like About Wednesday (Other Than Hearing The Words ‘Dick Grasso’ 9,856 Times)
Looking to the indices, on Wednesday, the Nasdaq traded
slightly higher earlier in the day but sold off to close in the minus column.
This action has it failing to close above its recent high.
The S&P put in a similar performance. It too stalled
near its recent highs.
So what do we do? I’m concerned about the
market’s failure to follow through on Wednesday. This action has the indices
stalling short of their old highs. It also has many sectors failing to continue
higher out of their recent pullbacks (i.e. also stalling short of their old
highs). Don’t get me wrong, I’m not “flip flopping” on you, I’m just a
little apprehensive based on this action. Also, tonight I’m seeing very few
setups. This is normally a sign to be cautious. Therefore, before looking to
enter new positions on the long side, make sure the indices, sectors, and
potential stocks are showing a resumption of strength. For the aggressive,
you might look for a trade on the short side to help balance out existing
longs.
No setups tonight.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..I have read your book several times and I found it very empowering to me. My trading improved quite a lot….Grateful for your help…..”
George B.
