What My Scans Are Telling Me
Looking to the indices, on Wednesday, the Nasdaq chopped
its way lower in narrow range trading.Â
Like the S&P (and Dow), it too remains stuck in a
sideways trading range.
![](https://tradingmarkets.com/media/2003/Landry/otc073003.gif)
The S&P put in a similar performance.
It remains in a choppy sideways trading range.Â
![](https://tradingmarkets.com/media/2003/Landry/spx073003.gif)
Looking to the sectors, overall, the narrow range trading
didn’t have much of an impact. The semis were a notable exception. They sold off
fairly hard. This action keeps them in a wide-and-loose trading range. HMOs
reversed after hitting new highs. This action suggests that they may be in for a
pullback. Health services-medical instruments and education remain in
longer-term uptrends. Gold sold off again, but so far, only appears to be
setting up as a pullback.
On the downside, software drifted lower and looks like it
has the potential to rollover (i.e. a top has formed). Internet sold off fairly
hard and also remains questionable. Sectors that have already formed tops such
as major drugs, utilities, energy, and the homebuilders still look like they
have the potential to continue lower.
![](https://tradingmarkets.com/media/2003/Landry/gso073003.gif)
So what do we do? Tonight (Wednesday) was one
of those nights were I found myself flipping though my scans over and over again–trying to find something worth trading. After several “passes” I was
only able to come up with a few stocks that were vaguely interesting. As I’ve
learned, it’s times like these that I’m better off not putting on new positions.
This decision becomes a no-brainer when you look at the trading ranges in the
indices. So, its pretty much SSDD (same stuff, different day): There’s no reason
to get aggressive on either side of the market. If you must trade, watch the stronger
sectors (mentioned above) for potential longs and the weaker sectors for
potential shorts.Â
No setups tonight. Remain patient, we should see numerous
stocks setting up once the indices break out of their trading ranges.
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….Â
Grateful for your help…..”
George B.