Clinging To The Wall Of Worry
On Monday, the Nasdaq open lower and chopped
around.
After an initial sell off, the S&P
essentially chopped around all day too. It is now right at a support
level.
So what do we do?
Monday’s performance is impressive. Why? Because the market had every
excuse to mount a decent sell–off,
and it didn’t. True, it was choppy and weak, but it was no where near
the levels one would expect from such an event day. This is keeping me
cautiously optimistic. Therefore, focus on the long side,
but wait for entries and keep a short or two handy just in case.
Looking to potential setups, NPS Pharmaceuticals
(NPSP)
is pulling back in an orderly fashion after recently breaking out.
This action suggests it has the potential to resume its uptrend out of
a Trend Pivot Pullback.
The Biotech Holders (BBH),
mentioned recently, still look like they have the potential to resume
their uptrend. This is especially true if they can take out Friday’s
pivot high.
Should I Stay Or
Should I Go?
When a trade doesn’t
work right away, you’re faced with the decision of whether you should
exit or wait for your stop to get hit. I used to be less patient with
trades. If they didn’t work out right away, I was quick to shut them
down. And, there’s nothing wrong with that. In all depends on your
style and personality. Lately though, I’ve found that I’m better off
giving stocks at least a few days to see if they will work.
Recently, I mentioned
the Boston Scientific (BSX)
as a pullback. It triggered on Friday (a) but failed to follow
through. However, so far it hasn’t done anything wrong–its holding
above its recent lows. Let’s monitor it over the next few days to see
if it will work.
Contest: Over
$2500 In Prizes
I will continue to
accept new entries until Tuesday morning.
It’s been a while
since we’ve had some fun. Answer the following three questions
correctly and I’ll enter you in a drawing to be held next Thursday.
The winner gets a 1-year free subscription to my trading
service, 2nd place gets a free 6-month subscription and third
place gets a free 3-month subscription. The questions are:
1. What is the name
of the bull I used to have? (hint: he’s not "bull"-ish).
2. Isabelle Florence
Landry was born on what day? (hint: a milestone for the Nasdaq)
3. Trend Following
_________ (hint: not genius)
Rules: Only one entry per person. Must
have a valid email address. Trading Market’s employees are not
eligible.
Other Fine Print:
There is a risk of loss in
trading. Past performance is no guarantee of future performance. In
case of rash, discontinue use. Close box before striking. Objects are
closer than they appear. Under 2, consult physician. Results not
typical. If you are severely overweight, consult your physician. Do
not use near fire or flame. Do not operate heavy machinery.
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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Dave
F.
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