As Easy As 1,2,3? Well, There Are Some Details
By Dave Landry | Random Thoughts
Random Thoughts
The Quack and Ps stabilized and turned right back up.
Ditto for the Rusty. In fact, it managed to close at al-time highs.
Most sectors followed suit.
Could the correction be over already? I don’t know and neither do you. No one knows for sure when it comes to the markets. Not even, and especially, those who scream at you like they do.
I’d feel a heck of a lot better if the market would accelerate higher and then have an orderly pullback (which I’ll discuss in detail in the chart show later today). It’s still a little dangerous to be buying at this juncture. I am seeing more and more setups though. This creates a dilemma.
So what do we do? First, be selective. This isn’t a market where you can throw darts and look like a genius. Pick the best of the best and leave the rest. Second, wait for entries. As I preach, that in and of itself, can often keep you out of new trouble. I’ve had several potential buys drop like a stone lately. The good news is that they didn’t trigger. No harm done. No trigger, no trade! Third, since no one knows exactly what a market will do next, honor your stops once triggered. If things work out, take partial profits and trail a stop higher. Dang, I just gave away my whole position management methodology. You’re welcome! Well, there are some details but it is just that, details. Seriously, if you can do 1,2,3 you’ll do just fine longer-term.
If you are not saving lives, building buildings, repairing transmissions, or doing other great things, come to the chart show. I am going to flesh out all of the above in detail. Sorry about yesterday’s SNAFU. “It” happens I suppose.
Futures are weak pre-market.
Best of luck with your trading today!
Dave