Here’s A Potential Opportunity For This Questionable Market
On Monday, the Nasdaq bounced back and forth in early
trading but began to sell off by mid-day. It found its low late in the afternoon
but still finished in the minus column. It remains in a sideways trading
range.Â
The S&P sold off fairly hard but did manage to close
off of its lows. This action gives back most of Friday’s gains and it keeps it
below short-term and longer-term highs. Â
So what do we do? The market just can’t seem
to get going. The S&P is stalling short of its old highs and the Nasdaq
remains stuck in trading range. The only sectors in true uptrends are commodity
related (e.g. metals & mining, energies). However, these areas are due for a
pullback. Therefore, avoid the long side for now. On the short side, the
financials appear to have put in a big picture top. Look for opportunities here
(shorts), but don’t bet the farm while the indices remain stuck in trading
ranges.
As far as setups, Lehman Brothers
(
LEH |
Quote |
Chart |
News |
PowerRating), in the
vulnerable broker/dealer, looks poised to resume its recent slide out of a First
Thrust (as usual, email me if you need the rules).Â
Best of luck with your trading on Tuesday!Â
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.
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