The market had a decent day on Thursday. Once again, the 50-day moving average was tested and it held. Again, this isn’t a line in the sand but paying attention to “da fidy” can help to keep you on the right side of the market.
The good news is that the major indices are less than 2% away from new highs.
As mentioned yesterday, there’s always something to worry about. The sector action has been really poor as of late. Most foreign stock markets have rolled over. The EFA shares are set up as a Bowtie down. And, bonds remain in a pretty serious downtrend.
In the markets, like life, you have to take things one day at a time. Yesterday was a good day. As usual though, follow through will be key. A few more big up days would make all the difference in the world. Anything less would be disappointing.
So what do we do? Until and unless we see meaningful follow through, I’d continue to keep an eye out for a short or two. Regardless of what you do, make sure that you wait for entries and honor your stops. As I have been saying lately, letting the ebb and flow of money management and portfolio management can help to keep you on the right side of the market, especially in questionable conditions. See yesterday’s (06/13/13) newsletter and webcast for more on this.
Futures are flat to soft pre-market.
Best of luck with your trading today!
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