Don’t Confuse The Issue With Facts
By Dave Landry | Random Thoughts
Random Thoughts
The Ps (S&P 500) ended flat. So far, they still look poised to resume their uptrend out of a pullback.
The Quack (Nasdaq) had an okay day, closing up ¼ %. Yet again, shorter-term, it looks poised to resume its uptrend out of a pullback. Unfortunately, it remains shy of its multi-year highs and could encounter some resistance there.
The Rusty (IWM) closed up nearly ½% after a bit of dip. Last the Quack, it looks okay shorter-term but remains below potential resistance at its prior highs. Longer-term the Rusty still looks questionable but a few big up days would negate this—this is why we take things one day at a time.
Yet again, in general, thing continue to shape up.
The Energies banged out new highs with vigor.
In Tech, the Semis made new highs yet again. Other Tech at lower levels such as Drugs, Biotech, Internet, and Computer Software continues to improve.
A lot of areas, like the Ps, remain set up as pullbacks. These include, but not limited to, Manufacturing, Chemicals, and Transports.
Gold and Silver stocks, yesterday notwithstanding, appear to be rallying from lows and forming a bottom.
There are a few areas such as Retail that still look a little dubious but for the most part, most areas are shaping up.
This broadening of the market is welcomed, especially after we had such narrow leadership not that long ago.
Not to confuse the issue with facts but the fact that our market remains constructive along with the rest of the world (EFA) in spite of world events is a positive.
If you ever get confused, go to www.dontconfusetheissuewithfacts.com or www.donotconfusetheissuewithfacts.com
So what do we do? Not much has changed just yet: In spite of the indices (especially the Ps) being set up as pullbacks, I’m not seeing a tremendous amount of setups just yet. This will likely change if the market can continue to hang in there. In the meantime, I think Gold stocks might be worth a nibble. For the aggressive, Retail might provide some selected shorting opportunities. As usual, take things on a setup by setup and a day-by-day basis but we could be entering a get ready to get ready phase. This is especially true if the Quack and Rusty can make new multi-year and all-time highs respectively.
Futures are soft pre-market.
Best of luck with your trading today!
Dave