How To Stay On The Right Side Of The Market When Things Are Looking A Little Ominous – Dave Landry on Trading

How To Stay On The Right Side Of The Market When Things Are Looking A Little Ominous

By Dave Landry | Daily Commentary

h Random Thoughts

The Ps bounced a bit but they still look a little ominous. Bigger picture, they have a double top look to them and shorter-term they have Bowtied down-10SMA>20EMA>30EMA to 10SMA<20EMA<30EMA.

The Quack looks much better on a relative strength basis. It found support near the bottom of its range which is just above the 50-day moving average. Often, many technicals come together at the same point. Obviously, it is important this support to hold. On a positive note, the index is less than 3% from multi-year highs. So, a few big up days would make all the difference in the world.

In the sectors most areas have turned down or at the least, have lost steam. And many recent high fliers look like they have the potential to fall from grace. Come to the chart show if you’re not saving lives or doing other great things. I’ll go over this in detail.

Gold and Silver stocks got hit fairly hard on Wednesday but so far, they still appear to have put in a bottom.

Considering the above, overall, I think there is still cause for concern. This doesn’t mean you sell the farm. Do consider some shorts. I still like the previous high fliers here such as retail. Do wait for entries on those setups. And, honor your stops on any remaining longs. Take things one setup at a time and one day at a time. There’s no need to make any drastic changes. As I often preach, the ebb and flow—let stops take you out of longs and entries put you into new shorts—can often keep you on the right side of the market.

Futures are firm pre-market.

Best of luck with your trading today!



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