Don’t Shoot The Messenger, Even If He Is ‘White Trash’
On Tuesday, the Nasdaq rallied in early trading but soon
found its high and then sold off hard for a solid trend day lower. It appears to be
resuming its downtrend out of a pullback..
The S&P put in a similar performance. This action has
it stalling below overhead resistance (the parallel blue lines).
The sector action isn’t any better. The vast majority of
them looked poised to resume their downtrends–like the market itself.
Below is broker/dealer, but I could have pretty much thrown a dart and found a
similar sector chart.
So what do we do? The fact that the market
reversed at resistance suggests that the Big Blue Arrows still point the way. I
know this pisses many of you off. In addition to the normal “trend following
moron”, I have recently been called stupid, an idiot, and even “the
white trash of the investing world.” Well, I don’t make the trends, I just
sit back in my “doublewide” (okay, it’s only a singlewide, but my
shorts continue to work, it could be a “doublewide”) and draw Big Blue
Arrows when I see them. Considering the above, continue to look for shorting opportunities.
As far as setups, Merrill Lynch
(
MER |
Quote |
Chart |
News |
PowerRating) looks like
it has the potential resume its downtrend out of a pullback.
Other
On Wednesday at Noon eastern, I will be doing my weekly
interactive presentation. I will be covering current market and sector
conditions, areas to look for opportunities, and numerous current examples of
money and position management. Email me if you would like a link to view this
show live or if you would the archives to prior shows (covering topics such as scanning,
sector analysis, entries, money and position management, market timing etc.).
Best of luck with your trading on Wednesday!
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.