Now You Know Why We Take Things One Day At A Time
By Dave Landry | Daily Commentary , Random Thoughts
Random Thoughts
I’d like to give thanks to all the folks at Traders Expo, especially Tim Bourquin and Elaina Lowe.
Well, things looked a little iffy way back last Wednesday before I left for Vegas. The Quack had pulled back into its prior trading range. And, the Rusty appeared to be on its way to the bottom of its trading range.
As I said, with things mixed and the overall market not too far from new highs, a few big up days would be just what the Doctor ordered. And, that’s exactly what we got on Thursday and Friday.
This action puts the Ps back to all-time highs. The Rusty is also at all-time highs. And, the Quack closed at multi-year highs.
The sector action looks great. Biotech, which had been rolling over, has now come back with a vengeance.
There are a few areas stinking up the joint such as Metals & Mining (especially Gold & Silver), Real Estate, and the Semis (which have been mostly sideways). Overall though, most areas are looking pretty good. Chemicals, Manufacturing, Defense, Brokerages, Regional Banks, Drugs, Insurance, Health Services to name a few are all at new highs.
The above is why we take things one day at a time and resist the urge to get too bearish when a market is not too far from new highs. Sure, fire off a short if you really really like the setup but for the most part, you want to wait to make sure the market isn’t just taking a breather.
Okay Big Dave, things are looking good. So, do we buy, buy, buy? Well, not just yet. Enjoy the ride on existing longs. Make sure you take partial profits as offered and trail those stops higher. Since the methodology requires a pullback, hold off on new long side positions for now until the market follows through and pulls back. I’d avoid the short side for now. No need to fight it.
Best of luck with your trading today!
Dave
