Way back last Friday, the market was soft.
The Ps lost 1/3%. They closed just off of multi-month lows.
The Quack was hit a little harder. It lost over ¾%. It too is just off of multi-month lows.
The broader based market was really soft. Nearly all sectors, even commodity related ones, ended lower. I suppose this isn’t a shocker when you look at the Rusty. It lost over 1 1/2%. This action puts it at multi-month lows.
I am seeing more and more shorts beginning to set up and fewer longs. And, of those longs nearly all are in the Gold and Silver stocks. The great thing about these stocks is that they can trade contra to the overall market.
Is it the end of the world? Well, not yet. Trading, like life, has to be taken one-day-at-at-time. As mentioned recently, it has been looking a little ominous as of late (see my recent column: https://www.davelandry.com/index.php/how-to-stay-on-the-right-side-of-the-market-when-things-are-looking-a-little-ominous/. This doesn’t mean that you should sell the farm. It does suggests that you should honor your stops just in case. It also suggests that you should continue to keep an eye out for a short or two. As I often preach (after all, I am the lead pastor at the The Church Of Trend Following.com
), letting this ebb and flow control your portfolio can help to keep you on the right side of the market.
“They” are not going make it easy on us. Even though the market looks like it is headed lower, it is not going to be a straight shot down. Futures are strong pre-market. So, make sure you wait for entries on potential shorts. For nimble and aggressive, look to play a possible Opening Gap Reversal (OGRE). If you don’t know what that is, you probably shouldn’t be trading them—get education first. See my articles and webcasts. I often cover trading OGREs.
I am proud to announce that I have an article in the September issue of TRADERS’ Click on the logo below to read–it is the first article listed on the front cover titled “Doing The Right Thing.”
Best of luck with your trading today!
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