You’re Still Here?
On Thursday, the Nasdaq gapped lower but found its low
fairly quickly. It then rallied for most of the morning. However, this gave way
to late afternoon chop..
The S&P put in a similar performance.
So what do we do? I really hate to read too much into thin
pre-holiday trading. With that said, the good news is that Thursday’s action
puts the indices back to their 50-day moving averages. Further, we have a CVR
III-Modified buy signal triggering tonight (Thursday). However, I think
you could flip a coin for Friday. More than likely, it’ll be thin and choppy and
the market could get “pushed” either way. Based on this, I still
believe that sitting on the sidelines is still the best course of action (or
non-action).
No setups tonight.
Let The Markets Come To You (or Know Your Methodology)
To those who are new to this column (or simply haven’t paid
attention over the last three years), my methodology is momentum based.
“Momentum” and more importantly persistency (i.e., follow
through) are crucial. When I see markets like we’ve seen recently, I tend to
back off. This is because I firmly believe in letting the markets come to me. If
you have a different methodology that excels in a thin, choppy pre-holiday
environment, then trade! Me? I have to be here but I assure you, I don’t
want to be here.
Best of luck with
your trading (or not trading) on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!