Today’s action after a stronger Labor report:
SP 500 -.01%
Nasdaq -.16%
Dow -.13%
QQQ +.27%
Try to keep things as simple as possible. The context is last week we had a “distribution cluster” on the Nasdaq closing below the 20d and 50d. A Bloodbath triggered and Hindenburg Omen triggered. Don’t get caught up in the “precision” in all of this. Nothing guarantees something bad will happen but using our market tools, it does tell us to be defensive and keep lower exposure levels in the market right now. We also must remain Flexible if the context changes. The first Rally Attempt which has begun will provide plenty of information where the market may be going next……but you need a “Scorecard” to evaluate the rally itself……we will be diving in this topic in Friday’s GMU.
We are still in a chop market and our biggest enemy is taking too many trades, stopping out and get cut to pieces. It ok to pilot a few trades with measures position sizes but overall, it is not a time to be aggressive. Let the Market provide the clues to guide our next move.
Monday we had two triggered Trades:
VIAV -1.57% is near breakeven currently
GEV +4.2% is off to a good start up 3.6%
MU gapped up +9.9% to recover the 20d which is constructive.
Trade Well
J