Are You ‘In The Zone?’
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
On Friday, the Nasdaq chopped back and forth in a very narrow range.
It did manage to close in the plus column though.Â
Ditto for the Ps.
So what do we do? Recently, I was concerned that the indices
were trading in a narrow range. On Thursday, we broke out of this range. The
action has the indices indices closing in on new highs for the year. So is this an “all clear?” Well, if you listen to
the media it is. Me? I’d prefer to see the market make new highs–and then
prove that it can stay
there. Until then, I think you can play the long side, just keep positions
light. Â
As far as setups, at this stage of the cycle (e.g. until the market starts
making new highs), I prefer to focus on those areas that have show signs of
bottoming and are in their early phases of a new trend. In other words,
transitional patterns. With that said, retail is my favorite sector here. Notice
the cup and handle and First Thrust.Â
And in retail, I like Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating). It is set up as a First
Thrust (as usual, email me if you need the rules for the pattern).Â
Note, I covered retail and Autozone (along with many other stocks and
sectors) in more detail during my weekly audio/visual presentation. Email me if
you would like the (free) link.
Best of luck with your trading on Monday!
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.