The indices drifted higher on Thursday. The Nasdaq was the “big” winner-gaining slightly more that ¼% Yawn.
So, nothing has changed in the overall market. The Ps still looks questionable (see recent commentaries regarding the Bowtie from all-time highs-click on the calendar on my website) and the Quack remains stuck in a range.
Although some areas like Biotech are just at new highs, most sectors still look questionable. This is especially true for areas like Retail-which have just formed a Bowtie down from all-time highs and Major Airs which appear to have put in a major top.
Speaking of Transports, although Shipping has woken up, the trannies overall appeared to have topped.
Selected Energies have begun to wake up. The Service stocks here broke out to new multi-year highs on Thursday. We could see setups here soon.
Even though Gold and the Gold stocks were sold off hard on Thursday, I still like the bottoming action here. Ditto for Silver.
Even though some areas have improved, for the most part, you can still count the strong areas on one hand.
Bonds appear to be resuming their slide. They closed just shy of multi-year lows.
I hate to read too much into a flat day but things to seem to be getting a little mixed. It is times like these that it often pays to listen to the database. And, right now it continues to provide few meaningful longs outside of Gold & Silver but I would imagine that we could see setups soon in the aforementioned stronger areas. For now though, just focus on what the database is providing. And, once again, I am still seeing more and more shorts.
Considering the above and the fact that the indices ended in flatsville, I think the plan remains the same:
Honor your stops on existing positions and wait for entries on new ones. Outside of the aforementioned selected M&Ms, continue to avoid the long side for now unless you really really like a setup. And, continue to look to fire off a short or two but only on entries.
Futures are firm pre-market.
Best of luck with your trading today!
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