Buy Technology, But Wait For This
On Friday, the Nasdaq opened lower, had a brief blip up, but then sold off
hard. It consolidated throughout mid-day but the selling resumed late in the
day.
The S&P put in a somewhat similar performance.
So what do we do? The Nasdaq still looks
great. So far, it only appears to be pulling back in its persistent uptrend. I
am concerned that the S&P has dropped back into its recent trading range.
However, I think the action in the Naz trumps this. Therefore, focus on
technology but wait for entries in light of Friday’s weakness.
As far as setups, Autodesk
(
ADSK |
Quote |
Chart |
News |
PowerRating), in the strong
software sector, looks poised to resume its persistent uptrend out of a pattern
I call a Trend Knockout (email me if you need the rules to this pattern).
Housekeeping
I’m getting a lot of basic questions such as how to enter,
where to place stops, etc… The majority of this is covered in the swing
trading primer that I often mention. Email me if you would like a (free) copy.
Also, I have the link to last week’s audio/visual presentation and the links to
those going back 10 months (covering topics such as scanning, sector analysis,
money/position management, psychology etc…).
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
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