3 Sectors To Buy…And 2 to Sell
On Monday, the Nasdaq generally worked its
way lower throughout the day. This action puts it below its 10-day simple and
20-day exponential moving averages. It also puts it below a considerable amount
of overhead resistance. Note: if these terms are new to you, I will be explaining
them further in Wednesday’s audio/visual interactive presentation.Â
The S&P put in a similar performance. This action
puts it below all 3 of its “Bow Tie” moving averages (again, I’ll
explain further on Wednesday).Â
So what do we do? The action in the
indices and especially the sectors remains concerning. Areas that recently led
us higher such as biotech and retail continue to slide. Therefore, on the long side,
continue to focus on those
areas in strong uptrends that can trade independently of the indices such as
metals & mining and the energies. On the short side, we will likely see transitional patterns (early trend) soon in areas
that have recently broken down such as the homebuilders, retail, and now
possibly biotech (to name a few).Â
As far as setups, Callon Petroleum
(
CPE |
Quote |
Chart |
News |
PowerRating),Â
in the independent oil and gas sub-sector (a), looks like it has the potential
to resume its uptrend out of a Persistent Pullback (email me if you need the
rules). Cal Dive
(
CDIS |
Quote |
Chart |
News |
PowerRating),mentioned recently and also in the
energies, still looks like it has the potential to resume its strong uptrend out of a
pullback.
Cal Dive
(
CDIS |
Quote |
Chart |
News |
PowerRating),mentioned recently and also in the
energies, still looks like it has the potential to resume its strong uptrend out of a
pullback..
Best of luck with your trading on
Tuesday!
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.