Where’s The Bounce?
On Tuesday, the Nasdaq open lower and chopped around. It
then began to rally but found its high early in the afternoon and reversed to
closer poorly and in the minus column. This action has it stalling out at its
recent highs.
The S&P also ended in the minus column.
Once again, the VIX still remains stretched–trading more
than 10% away from its 10-day moving average. This action still suggests that
the market has the potential to reverse.Â
So what do we do? Well in spite of the above and recent buy
signals, the indices have failed to rally. Therefore, it’s important to wait for
some sort of signs of a reversal before considering index plays. As for shorts,
once again, I still think it is too late to establish new positions. Continue to
manage your existing positions–scale out and tighten stops. After we get a
bounce, we should see a plethora of stocks setting up again (on the short side).
No setups tonight. For educational purposes*, Chiron
(
CHIR |
Quote |
Chart |
News |
PowerRating),
in the weak biotechs, is a strategy I call “Accelerating Momentum
Strategy” (AMS). This is where a stock in a longer-term gradual trend has
an acceleration in its trend and then pulls back.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Technically, all information provided on this site is for
educational purposes only.
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Anthony P.
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