There’s always something to worry about


Dave Landry is principal of Sentive Trading, a money management firm, and a
principal of Harvest Capital Management. Mr. Landry is the author of two top
selling books,

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>Dave Landry’s 10 Best Swing Trader Patterns And Strategies
and

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>Dave Landry On Swing Trading.
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On Friday, the Nasdaq chopped back and
forth throughout out most of the day but did manage to rally going into the
close. This action was enough to put it at a new 5-year closing high.

The Ps ended higher too. They remain shy of
resistance/their 5 year highs.

So what do we do?
With the Nasdaq at 5-year highs and the S&P just shy of 5-year highs (and,
of course, the big blue arrows), you can’t argue that the trend isn’t up.
However, there’s always something to worry about: I’m concerned that the S&P
remains below short-term resistance. Some sectors have lost momentum while
others appear to be in the early phases of forming a top. Many commodity related
areas (today notwithstanding) remain in strong trends. And finally, I’m seeing
more shorts setting up than longs. So is it time to call a top? No. A few big up
days would put the indices and many sectors decisively at new highs,
suggesting that this bull is alive and well. All things considered, I remain
cautiously optimistic.

As far as setups, for the aggressive, look to
fire off a short in areas that remain questionable such as retail. Just remember
to wait for entries and honor your stops since this would be a
“pioneer trade” (early trend).

Best of luck with your trading on Monday!

Dave Landry

dave@davelandry.com

P.S. Reminder: Protective stops on every trade!

P.P.S. If you would like a free
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