Random Thoughts

Lately, I've been saying that a few big up days would make all the difference in the world. Unfortunately, the converse is true when the market is at an inflection point.

Friday certainly scores as a bummer. It has the Ps & Quack setting up as "micro" First Thrusts. It also has the Rusty set up as a Bowtie down.

I hope these patterns don't work this time.

It's not end of the world. It is important that the indices follow through to the upside soon to negate the above.

So, what do we do? The plan still remains the same with the exception that #2 is even more important during times like these.

For now, 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.

One more thing, don't make any big picture decisions. If the market begins to roll over, there should be plenty of time to get short.

There's no need to be a hero.

Futures are firm pre-market.

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Best of luck with your trading today!

Dave
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