Why You Might Want To Sit On Your Hands On Friday
On Thursday, the Nasdaq gapped higher but immediately
reversed. Then, after trading back and forth, it began to rally around mid-day.
However, it found its high late in the day and sold off going into the close.
The S&P put in a similar performance. This action has
it stalling right at the 200-day moving average and well below the potential
resistance of the March highs (circa 900).
So what do we do? The lack of follow through is somewhat
concerning. This is especially true when you consider that traders (or
“investors”) may look to dump stocks ahead of the weekend. Looking to
the sectors, I’m seeing a lot stalling action there too. Don’t get me wrong,
this doesn’t mean that they are done–so far, it’s just a warning sign that they
could be pulling back. Looking to my scans, I’m finding very few meaningful
setups. Therefore, based on the above, I think it’s best to stay on the
sidelines for now.
No setups again tonight. Remain patient, if we can break
through resistance (maybe with the help of a positive news catalyst from the
Middle East?), we could see many setups on the next pullback.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….I’ve just finished to reading your book and LET ME TELL YOU IT’S GREAT!!!
RT
Italy
