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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
at=st”>click here or call 888-484-8220 ext. 1
Should Trade For Short Term Or Long-term Gains?
Although I’m “slotted” as a short-term trader, I will stick with
positions as long as they move in my favor. In fact, I like to view myself
an “intermediate-term trader with better entries.” My goal is to
be right over the short-term, take partial profits, and then hopefully, continue to
participate in a longer-term move.Â
Let’s take a look at Abercrombie & Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating), a short
mentioned recently in my trading service. The stock triggered and within a
few days, it hit the initial profit target.Â
Now, let’s fast forward to today. Notice that the stock has continued lower. Obviously, this doesn’t always happen but as you can see it pays off
nicely when it does.Â
I’ll cover the above in more detail in
Wednesday’s interactive presentation (see below for more information).Â
On Tuesday, the Nasdaq opened firmer and
rallied in early trading. However, it found its high by mid-day and then began
to drift lower. The selling accelerated on some news from some old guy. This
action has it closing poorly and it has it approaching its August lows.Â
The S&P put in a similar performance. This action
keeps them stalling short of its old
highs.
So what do we do? The market
continues to lack conviction. Therefore, on the long side, focus on those areas
in strong uptrends that can trade independently of the indices (e.g. Gold). On
the short side, since weak areas such as retail are becoming oversold, look to
take partial profits and trail your stops lower vs. initiating new
positions.Â
As far as potential setups, Agnico-Eagle Mines
(
AEM |
Quote |
Chart |
News |
PowerRating),
in the aforementioned strong gold sector, looks like it has the potential to
resume its accelerating uptrend out of a Trend Knockout (as usual, email me if you need the
rules).Â
FYI
On Wednesday 09/21/05, I will be doing my weekly audio/visual interactive
presentation. I plan on covering the above ANF example and other stocks
mentioned recently in my service and column. Email me if you need instructions on how to join (the same
each week). Admission is free but space is limited by the software. Also, email me if you would
the recording to this and sessions for the prior year (covering subjects such as
money management, position management, entries, damage control, scanning
etc..).Â
Best of luck with your trading on
Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.