Market conditions are weak again this morning as the economic situation in China continues to deteriorate. The so-called “resilient” U.S economy has the market concerned the FED will keep higher rates for a longer period of time.
Broader markets as demonstrated by the S&P 500 & Nasdaq closed below their 50-day SMA for the second day in a row. The DJI continues to trend in a downward channel, and price action closed below the 50-day SMA for the first time. All three indices are trading below their 9-day SMAs with all the oscillator in the red including the MACD.
As per yesterday’s plan, BSX price action hit a sell limit slightly above the resistance level at 51.23 leaving the Paper Trade portfolio with a slight 0.39% gain or $20 for the trade. For me, a gain, even $20 is better than a loss, so I’m happy to be out of the trade and on the sideline with dry powder.
Market conditions have been poor in the month of August. By being disciplined and following the trading guidelines, we were able to stay out of the market this week and avoid the market decline. As a swing trader, it is important to be aware of the current market conditions and to adjust your trading strategy accordingly.
The stock market is a long-term game. Don’t expect to get rich quick. Be patient and focus on making small profits over time.
Have a great weekend. See you at the Platinum Channel ZOOM call.
This information is for educational purposes and not a recommendation to buy or sell a stock.
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