Why I Will Wait To Buy
Looking to the indices, on Wednesday, the Nasdaq lapped
lower but quickly found its low and began to work its way lower. It found its
high late in the day and generally worked its way lower throughout the rest of
the day. This action keeps it below its old highs.
The S&P chopped back and forth.Â
This action keeps it in a trading range.
So what do we do? Nothing much has changed.
The S&P remains stuck in a trading range and the Nasdaq is overbought and
shy of its old highs. Also, the VIX remains near one-year plus lows. Based on
this, the potential exists for a correction before a breakout. Even if we do
breakout first, there will be plenty enough time to buy on the first pullback. Therefore,
continue to put together your buy watch list in stronger areas such as
the semis, cyclicals, and retail. However, continue to wait for a breakout
before getting aggressive. Once again, mso-fareast-font-family:”Times New Roman”;mso-ansi-language:EN-US;mso-fareast-language:
EN-US;mso-bidi-language:AR-SA”>on the
short side, for the nimble, we could see a counter trend trade soon in the
indices.
No setups tonight. Once (all of) the indices clear
their trading ranges, we should see many stocks setting up on a pullback.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..The best thing about Dave Landry on Swing Trading is that it is so easy to read and understand. Examples are numerous and the theme of money management – with concrete examples – is repeated throughout the entire book….”
Active Trader Magazine
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