Why You Should Start Celebrating Early On Tuesday
On Monday, the Nasdaq opened firmer but quickly turned down
and sold off fairly hard. It then generally chopped its way higher for the
remainder of the day. However, it still closed below its recent trading range
and remains well below its 50-day moving
average.
The S&P also chopped its way higher after an initial
sell off. It managed to close slightly in the plus column. It too remains well
below its 50-day moving average.
So what do we do? All three indices remain well below
their 50-day moving averages and below their recent trading ranges. Also, most
sectors are now catching up to the poor action in the stocks within them: The
semis (below) are breaking down out of an inverted cup and handle. Software
looks poised to take out the bottom of its trading range. And, Internet took out
the bottom of its trading range. Further, as I look to numerous individual
issues, I’m seeing plenty of stocks that could set up soon as shorts and very
few meaningful longs. Therefore, it looks like the short side is the place to
be. However, New Year’s Eve will likely be very thin and choppy. So, if I were
you, I’d forget about trading and look to get a head start on celebrating.
I was unable to find any meaningful setups tonight.
Update On Vacation Goals
“Jackass” was no longer playing. Bertha wasn’t
biting. I did get the Xbox but didn’t get around to playing Splinter Cell since
I have become addicted to Halo. I didn’t get to circumnavigate Lake
Ponchatrain but did tool around the harbor. I also didn’t do all the rancher
things I planned but did get to ride a horse, dig ditches and burn something. And
yes, the hot wings were amazing. I also did a prime rib big enough to flip over
Fred’s car (remember the beginning of the Flintstones?) on my new BBQ pit. All
in all, it was a great success. It’s good to be back though. I need the
rest.
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…Your book is a great read. You have a way of making a complicated market LOOK simple (not an easy task)….”
Ron Furden
Furden Capital Management, LLC
