Focus your trading on these 3 sectors for now

• April 25, 2006
• Dave Landry

Dave Landry is principal of Sentive Trading, a money management firm, and a
principal of Harvest Capital Management. Mr. Landry is the author of two top
selling books,

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>Dave Landry’s 10 Best Swing Trader Patterns And Strategies and

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>Dave Landry On Swing Trading.
If you would like a free trial to Dave’s Nightly Swing Trading Alerts Report

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On Tuesday,  the Nasdaq rallied in early trading but then chopped
back and forth for the remainder of the day.    

The S&P showed some initial strength but soon found its high and began to
sell off.  It found its low around mid-day and then chopped sideways for
the remainder of the day. .   

 

So what do we do?  The fact that the indices can’t hold their 5
year highs is concerning. It suggests that this market lacks any conviction. In
the sectors, the commodity related issues remain in strong uptrends. However, most
other sectors are either chopping sideways are appear to be forming
transitions (i.e. could be rolling over).  Therefore,  outside of the
metals and energies, avoid trading on the long side. On the short side, the
REITs appear to be resuming their downtrend out of pullbacks.  

No setups tonight. If the market continues to stall/roll over, we should
see  a plethora of setups on the short side.

Wednesday’s With Dave

It’s that time again. On Wednesday 04/26/06 at 11:00 AM EST, I will be hosting my weekly interactive lesson.
I plan on covering  market and sector conditions, money  and position
management techniques, and
some other stuff. Once that’s done,
I’ll will  then take your questions on
individual issues or trading in general. As usual, admission is free (and I give money back guarantees if not completely satisfied!).
However,  the space is limited by the software. Email me if you need instructions on how to join (the same each week) or if you would like the archives for the prior year (covering topics such as money & position management, scanning, picking the best setups, sectors, longer-term trend following and a plethora of other stuff). 

Best of luck with your trading on Wednesday! 

Dave Landry

dave@davelandry.com

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

P.P.S. If you would like a free
trial to my trading service, click
here.