Event Driven

  • September 20, 2001
  • Dave Landry

 

On Thursday, the Nasdaq lapped lower and after a
brief rally, chopped its way lower. This action has it closing poorly.

 

The S&P resumed
its sell off to hit fresh 3-year lows.

 

The VIX ($VIX.X)
climbed to 3-year highs. This action confirms the panic selling
continues.

 

So what do we do?
Although the oversold nature of the market and the market timing
signals suggests that we should bounce, we remain in a frustrating
event driven environment. There are a few shorts that are beginning to
set up in banks, financials, telecom and in most tech sectors that
have been creamed as of late.  However, keep in mind that this is
a damned if you do and damned if you don’t situation. If you try to
short, the market will finally bounce. If you don’t, you’ll sit back
in anguish as oversold becomes even more oversold (again). Probably
the best advice is to continue to keep it light or don’t trade at all. 

Looking to potential setups, Fifth Third Bancorp
(FITB)
looks poised to continue its breakdown out of a pullback from lows.

 

Best of luck with
your trading on Friday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on
every trade!

P.P.
S.
I look forward
to meeting you in two weeks at TM2001.
Don’t hesitate to register, because in addition to
showing
you every important variation on pullback setups, I’ll also be
teaching you my favorite new
techniques including: how to capture trends before the crowd
using “transition in trend” patterns
and how to ride huge momentum off false moves…both
to the long and short side.

 

 

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North Carolina

 

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