He Who Fights And Runs Away
On Tuesday, the Nasdaq gapped slightly higher but quickly
found its high. It then sold off for a solid trend day lower. This action has it
closing poorly and near its February lows.
The S&P also sold off to close poorly.
So what do we do? Tuesday showed that the market remains
vulnerable to news (rumors) and world events. This puts us back in play-both-sides mode. On the long side, stick with the strongest issues or those
issues that can trade contra to the market.
Looking to potential setups, Engineered Support Systems
(
EASI |
Quote |
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PowerRating), in the strong defense sector, appears to have stabilized after
Monday’s “knock out” move. This action suggests that its uptrend
remains intact.
He Who Fights And Runs Away,
Lives To Fight Another Day
As you know, I came into Tuesday positive. However,
the heightened tensions in the Middle East and Cisco rumors at home threw a
wet blanket on those plans. Fortunately, simple things such as protective stops,
basic money management and waiting for entries allowed me to live to fight
another day. Oh, I’m not happy everything didn’t work out as planned, but at
least I know there is a tomorrow for me.
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…….While on the road I take your book and read it again and again in the evenings. It is a bible that should be read by all traders (and I’ve been in the business for 30 years). Oh, how I wish I would have had your book 30 years ago.
Anyway, keep up the good work!…..”
Thanks!
Bill B.
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