Take things one day at a time is what I preach.
Tuesday was a lot better than Wednesday.
On Tuesday the Quack was approaching multi-year highs and the Ps and Rusty were approaching all-time highs.
On, Wednesday, the Ps ended off their worst levels but still lost over ½% nonetheless.
The Quack and Rusty (IWM) put in similar performances (or lack thereof).
Although they have lost some steam on a net net basis (e.g. the Ps are only up .67% for the year), it’s not the end of the world in the indices. A few big up days would put them back to new highs. I am more concerned about the sector action.
The REITS got whacked fairly hard, losing nearly 2%–which is a big deal for Real Estate.
Biotech is stalling out in its bounce from support. The IBB is starting to look a little questionable here. Also, I’m starting to see a short or two setting up in some big cap issues here.
Gold and Silver were hit fairly hard. So far though, the uptrends remain in place here.
I’m mostly concerned about those areas that never did make it back to new highs recently such as Consumer Non-durables/Durables, Automotive, Banking, Manufacturing, and Retail.
No a switch didn’t get flipped. It’s just one bad day.
So what do we do? Well, in light of Wednesday’s action, honor your stops. Hey Big Dave, don’t you say that every day? Yes, and I will continue to say it until y’all practice proper money management. On new positions, wait for entries. In light of the indices and many sectors losing steam, make sure you really like a setup (watch the Intro To Stock Selection video) and/or you think it can trade independently of the overall market.
Futures are weak pre-market.
Best of luck with your trading on today!
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