Correction Completion?
On Monday, the Nasdaq opened lower and sold off hard.
However, it quickly regained most of the morning losses. It then worked its way
higher to close well and in the plus column.
The action in the S&P is very interesting. It found
support and reversed right at the 1100 support level.
So what do we do? I’m very
encouraged by the action in the S&P. The only thing that bothers me is that
it‘s
a little too perfect. At times like these, I pay careful attention to what the
database is telling me. And, tonight, I’m finding many setups on the long side
and fewer setups on the short side. Therefore, focus on the long side,
but don’t completely forget about the short side.
Looking to potential setups, Boston Scientific (BSX)
looks like it has the potential to resume its longer-term uptrend out of a
pullback.
Network Associates (NETA),
mentioned Friday as a Trend Knockout, still looks like it has the potential to
resume its uptrend.
On the short side, Washington Mutual (WM),
mentioned recently, still looks poised to continue its downtrend.
Other
Thanks for the emails regarding the recent walk through(s).
I promise to do more as they set up. In the meantime, you might want to read the
articles on position management and money management under under Traders
Lessons.
Best of luck with your trading
on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
"Your book
is well written, concise, and laid out so that anyone with a rudimentary
background to a master’s level trading education could be very successful. You
have done a superb job! My hat is off to you Mr. Landry!!!"
Mathhew M.
No risk, 30-day, money
back guarantee.