Don’t Quit ‘Smoking’
Editor’s Note:
This article has nothing to do with smoking. Neither Dave Landry nor
TradingMarkets.com endorses smoking. Cigarettes are bad for your health. Do not
smoke.
Brice
Keep on ‘Smoking’
Here’s another another smoke ’em if you got
’em example of a recently mentioned stock. Following the general rules outlined in my swing trading primer (from
my second book, email me if you need a copy of this chapter), Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating)
triggered and sold off nicely to hit the
initial profit target. Once this occurs, half of the shares are exited to lock
in partial profits and the stop is moved to breakeven on the remaining
shares—and then subsequently trailed lower. Following these simple money
management rules and barring overnight gaps, this sets you up for a possible
home run on the remaining shares. As usual, I’ll continue to follow up on this and other
recent examples in future columns and in my weekly interactive presentation (see
below).
On Friday, the Nasdaq open firmer, dipped briefly, and then
it began to rally. However, it found its high by mid-day and then sold off
throughout most of the afternoon. Finally, a late-day bounce kept it in the
plus column.
The S&P put in a similar performance but wasn’t able to
stay in the plus column. It too remains below overhead resistance.
So what do we do? There’s really not much to
get excited about at this juncture. The long term trend remains down. However,
shorter-term we remain in a choppy sideways trading range. And, the best
trending stocks (e.g. those commodity related ones mentioned recently) are now oversold.
Therefore, it’s too late to establish new positions here. On the long side,
about the only area that looks interesting is biotech. Begin watching for
potential setups here or buy the ETFs to gain exposure.
No setups tonight.
FYI/Housekeeping
I’m a little behind in emails but I hope to catch up
soon.
The recent offer still stands: I have the recording to last Wednesday’s presentation
coving a host of topics including damage control, trading psychology, position
management, etc…. Also, I have the past past 9-10 months archived (covering topics such as
scanning,
sector analysis, entries, money and position management, potential
opportunities, market timing etc….). Watching these will give you a good feel
for how my methodology works–both good and bad. Email me if you are interested.
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
Ties Strategy. Click
here for details.