Random Thoughts
The good news is that the market didn't come unglued. It found its low fairly quickly and then crawled its way back up. The bad news is that it still ended down hard for the day.
This action keeps the recent sell signals intact. Again, a few big up days would make all the difference in the world. Unfortunately, a few big down days would confirm these signals.
I think it's still a one day at a time environment. This will keep you from making any big picture predictions should this only be a correction. And, so far, the selloff has been somewhat orderly.
So, what do we do? Since we remain in one-day-at-a-time mode, the plan remains the same:
1)Honor your stops on existing positions just in case this turns into something bigger. 2)Be selective on new positions. Trade the best and leave the rest. 3)Wait for entries on new positions. Again, as I preach, this can often keep you out of new trouble. 4)Start thinking about firing off a short or two but keep #2 and #3 in mind.
Futures are flatsville pre-market.
Click here to watch today's Market in a Minute.
Best of luck with your trading today!
Dave
__________
Expert swing trader Dave Landry comments on the charts for the major markets, indexes and sectors for the upcoming trading day in his daily one-minute video.
Make sure your sound is turned up. A new browser window will open and the video will begin playing within a few seconds.
Click here to watch today's Market in a Minute.
You can contact Dave Landry by email at dave@davelandry.com or visit his website DaveLandry.com.
The Layman's Guide to Trading Stocks
Dave Landry's 10 Best Swing Trading Patterns and Strategies
Dave Landry on Swing Trading
Reply With Quote Reply With Quote