Wednesday was an after all was said and done, a lot more was said than done kind of day. The indices ended in flatsville. The Ps and Rusty lost less than 1/10th of a percent.
The Quack did manage to gain a whopping .14%. Nevertheless, this is enough to keep it at multi-year highs–better than a poke in the eye I suppose.
The good thing is that sometimes you get a big up day in the market, a pause day, and then another big up day.
As you would imagine with the indices hovering near new highs, many sectors are also trending and/or near new highs. Chemicals, Semis, Health Care Plans, to name a few made new highs.
Internet had a solid day. This action keeps it at fresh highs.
Banks had a decent day on a relative basis. They continue to fight their way back higher.
Speaking of comebacks, Retail,after going straight down in February, has now made it back to new highs.
Gold and Silver still look like they have put in major bottoms. Shorter-term though, they have been trading sideways. Make sure you wait for entries on new positions here. I’m going to flesh out bigger picture vs. the short-term later today in the chart show.
So, was Wednesday the pause that refreshes? I don’t know. Maybe. As a trend follower, I don’t try to predict too much, I just follow along. This is how I earned the name “Trend Following Moron.” My life got a lot easier when I stopped trying to figure it all out and just followed along. You might want to write that down. And, 10 years from now when you’re plotting your 15th oscillator or 3rd derivative trinomial, think: wait, has the market be going mostly up or mostly down? I just saved you 10 years. You’re welcome.
So,what do we do? Other than Gold and Silver, I’m not seeing whole lot of setups out there. And, in Gold and Silver, the recent sideways movement is causing fewer and fewer setups to be produced. Therefore, for the most part, you might want to let things shake out a bit. Let the market come to you. If you truly love a setup, then take it. Bring your favorites to the chart show later and I’ll see if I can pick them apart or give you a high five-ah. No matter what you do, make sure you wait for entries and use protective stops once triggered. Then, look to take partial profits.
Futures are firm pre-market.
Best of luck with your trading today.