Why No Action Could Be Your Best Action
Looking to the indices, on Wednesday, the Nasdaq opened
firmer and initially rallied but quickly found its morning high and began to
sell off. However, if found its low by mid-day and worked its way higher
throughout the rest of the day.
It appears that 2050 to 2100 could provide overhead
resistance.
The S&P put in a somewhat similar performance. So far,
it appears to be stuck in a sideways trading range.
So what do we do? Since the S&P remains
stuck in a trading range, I still don’t see any reason to get excited about this
market from my vantage point (momentum trading). Statistically, the indices do
have the potential to trade higher over next 3-7 trading days. This is based on
their oversold nature and my market timing systems (TRIN Reversal System and
Oscillator Swing System). However, with momentum missing, this, in and of
itself, isn’t reason enough to play. Therefore, once again, if
you must trade, make sure you stick with selected areas of stronger sectors such
as health services, leisure, financial, telecom, and
insurance. On the short side, unless there is a tremendous bounce, we could see
tech setting up soon.
No setups tonight.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is being released on Friday, February 28.
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