Here’s 2 To Buy And 2 To Sell
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
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On Friday, the Nasdaq opened weaker but
soon found its low and began to rally. It remained generally firm throughout the
day but did drift lower going into the close. This action has it closing well
and puts it back above its August lows.Â
The S&P put in a similar performance but was a
little weaker going into the close.Â
So what do we do? The fact that the
indices are finding support near/at their August lows suggests that they have
the potential to bounce from oversold. However, this in and of itself isn’t
reason to buy. Therefore, on the long side, continue to focus on those areas
in strong uptrends that can trade independently of the indices (e.g. energies
and metals & mining). On
the short side, look to establish (or re-establish) new positions in areas in
strong downtrends that have recently pulled back such as retail and
leisure.Â
 Â
As far as potential setups, for the aggressive, Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating),
in the aforementioned weak retail sector, looks like it has the potential to
resume its accelerating downtrend out of a pattern I call “Accelerating
Momentum Strategy” (as usual, email me if you need the
rules).Â
FYI
I have the recorded link to last Wednesday’s audio visual. In it I covered
longer-term trend following from short-term patterns, current conditions, and
fielded questions. Email me if you need the (free) link to this and/or links 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
Monday!
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.