Why You Might Want To Wait Until Next Year Before Buying This Market
Tuesday December 30, 6:26 pm ET
By Dave Landry
TradingMarkets.com
Looking to the indices, on Tuesday, the Nasdaq (Nasd,aqSC:^IXIC - News) chopped back and forth in a narrow range but did manage to close on a high note. This action was ,enough to keep it (slightly) above its recent trading range and at new highs for the year.
The S&P also also chopped back and forth but ended flat on the day.
So ,what do we do? I really hate to read too much in pre-holiday trading, especially on a narrow-range choppy day. With that said, the song essentially remains the same: The strongest areas (longer-term) still remain cyclical stocks including chemicals and commodity related stocks such as energy and metals & mining. And, so far, the market remains overbought. Therefore, on the long side, you might want to tread lightly on new positions especially since trading will likely be thin and choppy on New Year's Eve. Once ag,ain, probably the best course of action is to continue to manage existing positions (e.g., trail stops and take profits if offered) vs. establishing new ones.
No setups tonight. If the indices have an orderly pullback, we should see numerous setups soon.
Best of luck with your trading on Wednesday!
D,ave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my 10 best swing trading patterns and strategies in my new book, available at www.tradersgalleria.com.
, |
