Random Thoughts
Well, Tuesday's action is why I think it's a little too early to make any big picture predictions and become a Ursidae Shortalotagus.
Now, don't get me wrong. Let's not start kissing each other just yet. Tuesday obviously scores as a positive but follow through will be key. A few more big up days would put the market back to new highs and we can all breathe a temporary sigh of relief.
So, what do we do? I think 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.
I think #3 is key. It won't always save your buttocks but on a day like Tuesday, it's likely that potential shorts would not have triggered.
Yet again, take things one day at a time. If your stops get hit, honor them.
Futures are soft pre-market.
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Best of luck with your trading today!
Dave
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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.
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