Play The Hand That Is Dealt, Or Not
By Dave Landry | Random Thoughts
Random Thoughts
After all was said and done, a lot more was said than done.
The Ps (S&P 500) ended in flatsville, losing .02% on the day.
The Quack (Nasdaq) gained a whopping .04%. Whoo whoo!
The Rusty (IWM) did move a smidge, losing .20% on the day.
So, the indices are taking a breather, now what?
So far, the breakout in the Ps remains nicely intact. No worries there. Unfortunately, the Rusty and Quack are still shy of their prior highs. As I have been saying, I’d like to see these two break out with vigor, not look back for a while, and then have orderly corrections.
If you’ve been trading for more than a day, you probably know that in markets you don’t always get what you want.
As usual, take things one day at a time. Yes, the indices stalled on Tuesday but it is not the end of the world.
Futures are very weak pre-market so we might have a little more corrective action ahead—at least on the open.
Again, I’d like to see all indices banging out new highs with vigor and then have orderly corrections. That creates an obvious bull leg that’s easy to trade. In the meantime, we have to play the hand that’s dealt. Or do we? Lately, I haven’t been seeing many meaningful setups. This is due to the fact that the methodology requires a pullback. And so far, we haven’t had one in this leg. That might change today if the opening weakness stays with us throughout the day. For now though, we remain mostly in wait mode.
So what do we do? Continue to let things shake out and wait for the database to generate meaningful setups. If this is the mother of all bull legs developing, we’ll have plenty enough time to add on new positions. In the meantime, honor your stops on existing positions.
Best of luck with your trading today!
Dave