Why You Should Continue To Keep Positions On The Light Side
On Monday, the Nasdaq opened firmer but quickly began to
slide. Then, after generally working its way higher, it chopped back and forth the rest of the day. This action keeps it near its 200-day
moving average.
The S&P also put in a somewhat similar performance. It
remains below its 200-day moving average.
So what do we do? It still looks like the next round
of market timing signals will be on the short side. I’m basing this on the relative
low readings in the VIX and the fact that the 3-day average NYSE TRIN is
hitting 30-day lows. Therefore, you might want to start putting together a list
of potential shorts. On the long side, stick with the stronger issues such as
telecom. However, no matter what you do, keep it light since the market remains
choppy.Â
Looking to potential setups,
Sprint
(
FON |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks like it has the
potential to resume it uptrend out of its first pullback since breaking out of a high-level
cup-like formation.
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….recently read your book and thought it was one of the best I have ever read, and I read
a lot of them….”
Sean G.
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