Focus On These Two Areas Until The Market Turns Back Up
On Monday, the Nasdaq chopped sideways throughout most of the day and
then sold off going into the close. So far, it still remains well above its recent breakout levels (2100).
The S&P put in a similar performance. So far, it too
remains above its recent breakout levels.
So what do we do? I like the action in
the Nasdaq and most of technology. So far, they only appear to be pulling back.
I would like to see the S&P stabilize at these levels so it doesn’t give
back all of its recent breakout. All things considered though, so far so
good–the market only appears to be correcting. However, until it shows signs of
turning back up, continue to focus mostly on commodity related areas since they
can trade independently of the indices. Right now, I’m still seeing
opportunities in metals & mining (less
gold and silver) and the energies.
As far as setups, Talisman Energy
(
TLM |
Quote |
Chart |
News |
PowerRating), mentioned
Friday and in the
strong independent energy sub-sector, still looks like it has the potential to rally out of a pullback. However,
wait for an entry (see “Free Stuff” below for more info on entries) since it was down
again on Monday.
Free Stuff
Once again, I have Wednesday’s A/V presentation archived along with the
prior year’s recordings (covering scanning, sector analysis, picking the
best setups, position management, damage control, etc). If you would like
this file or the aforementioned primer on swing trading, shoot me an
email. Note: I’m a little backed up but plan on catching up soon.
Best of luck with your trading on Tuesday!
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.