Get Ready To Buy But Make Sure You Do This
Looking to the indices, on Tuesday, the Nasdaq opened
slightly firmer but soon began to sell off. Then, after some mid-day
consolidating, it rallied going into the close.
The S&P also managed to close off its lows after
trading down. This action sets up a Trend Knockout (TKO).
So what do we do? I like the fact that the
market showed some corrective action on Tuesday. I just wish it would have
corrected a little further. Had it done this, it would have likely taken out
some of the “fast money” (those will little patience or staying power)
and could have cleared the way for the market to trade higher. Nonetheless, the
S&P is set up as a TKO. Therefore, start putting together your buy list but
you might want to wait for entries just in case.
In spite of Tuesday’s pullback, my database generated very
few meaningful setups tonight. Remain patient, we will likely see numerous
setups soon on a continued pullback.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S.
In February I’m having a small, exclusive three-day swing trading seminar and I would like you to attend.
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