jump to navigation

Summer Doldrums ? August 11, 2018

Posted by Tom in Thoughts.
Tags: , ,

Aug. 10, 2018 – This is another short post as I’m winding up my “road trip”.  A short look at the chart below shows some very narrow range bars from Tuesday through Friday of last week.  We’ve bounced off the previous swing high and now that swing high is resistance to future price increases. That resistance is at the 7933 level on the NASDAQ Composite Index (green line).

Support of prices are at the 7604 level (red line).  These are our “lines in the sand” and represent where buyers and sellers have previously taken a stand.  I own personal feeling is that this market has entered into a trading range, a.k.a. the summer doldrums”.  Hey, it’s August and many of the big guys are on vacation.  Likely not much will happen until after Labor Day.   . . . . . unless a big news item comes along.  This administration appears to be trying to solve problems by edict . . . . and that doesn’t appear to be working out well in the short term.  (i.e. tariffs)

Where I see some strength is in Pharma, short China, short Gold, Wireless and Healthcare.  Banks and Financials bring up the rear.  So, let’s be a little patient for now, but be careful also.

That’s it for this week.  Have a good week.       ……………….  Tom  ……………


No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: