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Courtesy of TrendTrader
Folks, take a good look at the date above. Do you know its going to be 100 years before anyone on the planet ever sees that date again? Pretty cool when you think about it. Any way moving on here. Yesterday We Said: Well here we are, we talked about an ABC and the NASDAQ Comp. Sure looks at this moment in time to have completed the minimum requirement for an ABC down. That is IF this C wave just so happens to be a retest of the little A wave (think trunication). If it sticks? good. Keep in mind that a lot of times the NASDAQ Comp LEADS and that means both directions. If it stabilizes here and lifts off ? It could drag everything right along with it. And sure enough its off to the races we go.
We’ve talked about consolidations of gains here over the years and have always said there are two types. Those that pullback and those that go sideways. We’ll find out soon enough if that was the lows the other day and its a retest of the highs from here right into the Christmas season. In the meantime we will just keep doing what we’ve been doing and that is buy stocks with good technical structure on either dips or in names that we don’t have to chase. Because it works folks. Current Game Plan So here is the bottom line through year end. We buy weakness and we’ll use the 50-day average to define our risk once in a position. We’ll also want to try to be investors (longer term) and hang on to some through the end of year or thereabouts (now if only we could get a pullback that’s meaningful and stays above the 50 day average here). As for trading here too we’ll want to do some hit and runs while at the same time holding a position for the longer into year end push. Said another way? Keep a core position and trade around with some too. Keep in mind some names will pullback and others won’t. There is a strong possibility that we’ll start seeing names trade to the beat of their own drum from here…
