We saw the Nasdaq take a plunge yesterday of about 80 points while the dow had a small gain. That in the short term does not bode well for the markets. What you like to see is the Nasdaq leading as much of the gain of the Dow has been when the Nasdaq leads.
I like to track that on a weekly basis as it shows when the wind might be at the markets back. We crossed to the downside on October 28th. Made a move to cross back last week but just missed and now the indicator is plunging. It is something to keep a watch on as it could well indicate when the holiday rally gets going to the upside in earnest.
I am long but luckily not in tech. I will be looking to get longer but today might not be the day.
I like to watch the first 10 to 15 min before committing to any trading plan as I do not care to be on the wrong end of a trend day.
It’s time to have a bit of patience and see where this volatility takes us to the downside. Historically we are in a good seasonal period however the best part of the seasonality comes the 2nd half of this month.
Things are also quieting down on the transition front and geopolitical front. There will be flare-ups but I think the worst of the surprises is behind us as to things affecting the markets for now.
Some word of advice for the people that feel devasted as a result of this election. 1. It is not a good idea to let politics take you for an emotional ride as much of the political landscape is intentionally designed to play toward your emotions and bias. 2. Whenever I get over the top worrying about the future I always go back to the good advice Gerry Spence gives ” When it’s inevitable, let go and enjoy the fall”
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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