Why I’m Still Bullish But Think We Are Due To Correct
On Tuesday, the Nasdaq opened flat but quickly began to
rally and generally worked its way higher throughout the day. It then gave back
some of its gains late in the day but rallied once again going into the close.
This action puts it at new highs yet again for the calendar year.
The S&P put in a similar performance but was more
dramatic in its moves following the Fed announcement. This action also puts it at new highs for the year.
So what do we do? The trend remains up and most sectors are
doing very well. However, based on the overbought nature of the market combined
with the reasons given Monday night, I still remain concerned that we are due
for a correction. Therefore, continue to manage existing longs–taking profits
when offered and trailing stops. And, continue to work on your potential
buy list for after the correction.
No setups tonight. We will likely seen numerous stocks
setting up after the market pulls back.
Trail ’em If You Got ’em
Tol Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating), mentioned recently and in the strong
homebuilders, appears to be resuming its uptrend. When a stock moves in you
favor like this, make sure you trail a stop higher.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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