Why Tuesday’s action is important
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,
>Dave Landry’s 10 Best Swing Trader Patterns And Strategies and
>Dave Landry On Swing Trading.
If you would like a free trial to Dave’s Nightly Swing Trading Alerts Report
href=”https://tradingmarkets.comsubscriptions/details.cfm?item=5808&subcat=st”>click here or call
888-484-8220 ext. 1.
On Tuesday, the Nasdaq dipped in early trading but found its low
by mid-morning and began to rally nicely. However, it found its high in early
afternoon trading and then sold off hard. This action has it closing
poorly.Â
The S&P put in a similar performance. Â
Â
So what do we do? Notice above that the indices sold off hard after
approaching multi-year highs. This action forms a bearish “outside
day” down. This suggests that we could be in for more selling.
Longer-term, the big blue arrows continue to point sideways. Â
There were no meaningful setups generated by my database tonight (Tuesday).
Wednesdays With Dave
It’s that time again. On Wednesday 3/22/06 at 11:00 AM EST, I will be hosting my weekly interactive lesson.
I plan on covering current conditions, have some good examples of trend
following and money/position management, and will take your questions on
individual issues or trading in general. As usual, admission is free (and I give money back guarantees if not completely satisfied!) but the space is limited by the software. Email me if you need instructions on how to join (the same each week) or if you would like the archives for the prior year (covering topics such as money & position management, scanning, picking the best setups, sectors, longer-term trend following and a plethora of other stuff).Â
Best of luck with your trading on Wednesday!Â
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. If you would like a free
trial to my trading service, click
here.
Â