Here’s A Stock That Has Potential In Spite Of What The Media Is Saying
I’m Dave Landry and I approved this column.Â
On Monday, the Nasdaq gapped lower and initially continued
lower. It found its low in early trading and began to rally. However, it found
its high by mid-day and traded back and forth for much of the day before selling
off again going into the close.Â
The S&P put in a somewhat similar performance but
closed poorly. This action puts it near its well watched 200-day moving average.
So what do we do?  Nothing much has
changed. The market remains in a downtrend and the vast majority of sectors,
even those that are commodity related, remain in downtrends. Therefore, continue
to look to play the short side. The only caveat is that you might want to play a
little less aggressively now that we are getting oversold. Aggressive players
might look for a day trade in the indices should they gap sharply lower
on the opening and then show early signs of reversing.Â
In spite of everyone pounding the table on how high crude
prices are/are going, the energy stocks have been dropping quite a bit as of
late. With that said, Patterson-UTI Energy
(
PTEN |
Quote |
Chart |
News |
PowerRating) looks poised to resume
its sharp drop from new highs out of a pullback (for more on this pattern, see
the archive for Friday’s column or email me for a copy).Â
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here to learn
more, or to order.
Â