Dave Landry On Dead Rats….And Cats
Hey Dave, What About IOC?
By following the rules described in my column/swing
trading primer (see below), Interoil Corp.
(
IOC |
Quote |
Chart |
News |
PowerRating) (originally mentioned on
9/30/04) would have stopped out on the remaining shares yesterday (10/13/04).
I’ll do an interactive (audio/visual) walkthrough on this on Friday–watch the
TradingMarkets home page Friday morning.
As I’ve mentioned in the past, if you’re new to momentum-based swing trading and would like more information on the basics such as trend, entries, and money management, email me and I’ll be happy to send you the primer section from my
aforementioned book.
On Thursday, the Nasdaq generally worked its way lower
throughout the day. This action has it closing poorly.
The September lows/50-day moving average (circa 1850) could
be the next stop here.
The S&P also sold off hard. This action puts it below
its 50-day moving average and it has it challenging its September lows.
So what do we do? I smelled a rat, the rat
died, and now he’s really starting to stink (see archives for more on the rat
saga). Seriously (something I never take myself), Wednesday’s action is pretty
ugly (the trend following moron who likes to use oxymorons). Although the market
looks like heck, if you’re not already positioned, I think it’s a little
late to short anything other than those areas that can trade independently of
the market. Brave day traders might look for a dead rat, er I mean cat, bounce
should the indices gap sharply lower on Friday’s open and then show early signs
of reversing.
No setups tonight. Aggressive traders might want to
start watching for potential transitional patterns in areas breaking down (that
can trade independently of the market) such as the gold/silver.
Best of luck with your trading on Friday!
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.