Why You Should Wait Before Playing This Market
I’m Dave Landry and I approved this column.Â
On Friday, the Nasdaq worked it way lower in early trading
but reversed late in the morning and generally chopped its way higher for the
rest of the day. This action keeps it above its 50-day moving average.Â
The S&P chopped back-and-forth in dull pre-holiday
trading. So far, it remains
above its 50-day moving average.
So what do we do? In general, things have been
improving as of late. Roughly half of the 239 sectors that I track are now back
above their 50-day moving averages. However, my database still fails to generate
any meaningful longs. On the short side, there were only a few (literally) worth a second look. As I’ve
mentioned in the past, a lack of setups is usually a sign to wait for better times.
Therefore, let the market come to you. If it stalls out and begins to head back
down, then we’ll look for shorting opportunities. If it continues to work its
way higher, then we’ll begin looking for potential longs.
As far as setups, Cardinal Health
(
CAH |
Quote |
Chart |
News |
PowerRating), mentioned
recently, still looks like
it has the potential to resume its slide from multi-year highs from its first
pullback–i.e. a First Thrust (as usual, shoot me an email if you need
rules for this or any pattern mentioned in this column).Â
Enjoy your holiday and best of luck with your trading on
Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here to learn
more, or to order.