Plenty Of Time
On Tuesday, the Nasdaq opened firmer but quickly reversed
and sold off. However, it found its low fairly early and then rallied for a
solid trend day higher. This action has it closing well.
The S&P also rallied for a solid trend day higher after
a bumpy start.
The Dow (and big-cap stocks) was the most impressive of
all. It extended Monday’s reversal from new lows.
So what do we do? The sharp reversals make swing (position)
trading difficult and frustrating. Probably the best thing to do for now is to
let the dust settle. If this is the “start of something,” we will have
plenty enough time to get long on first pullbacks. On the other hand, if it
rolls back over (which is likely) there will be a plethora of opportunities on
the short side.
No new setups tonight.
Trail ’em If You Get ’em
When I last left off, I was discussing trailing a stop on
the Software Holdrs
(
SWH |
Quote |
Chart |
News |
PowerRating), mentioned recently (a). I was discussing using
the lesser of a 2-bar
high or 1.5 points. This placed the stop above Friday’s high. For
Wednesday, let’s assume there are no adjustments to this stop (b).
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“Feel free to quote me, the book is fantastic. It is written for traders who want to know the real basis of
successful trading. No glory stuff. No hero tales. Plain old sound advice which is a rare commodity in this
business”.
Mike Marlow
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