Here’s A Stock That Will Likely Continue To Outperform The Indices
On Tuesday, the Nasdaq chopped around in thin, pre-holiday
trading. This action keeps it below its recent trading range
and well below its 50-day moving
average.
The S&P sold off in early trading but reversed to close
well and in the plus column. It too remains well
below its 50-day moving average.
So what do we do? I really hate to read too much into
thin, pre-holiday trading. Therefore, in general, the song pretty much remains
the same. The indices remain below their 50-day moving averages/short-term
trading ranges. Many sectors continue to play catch-up to the underlying
weakness. And, the only stocks that look decent on the long side are the golds.
Considering the above, watch for a resumption of trend/rollover in tech sectors
such as biotech, semis, software, Internet and major drugs. On the long
side, stick with stocks that can trade contra to the indices, such as the
aforementioned gold stocks.
Looking to potential setups, ASA Ltd.
(
ASA |
Quote |
Chart |
News |
PowerRating), in the
strong gold sector, looks like it has the potential to resume its uptrend out of
a Trend Knockout (TKO).
Happy New Year/Thanks!
This column is the most enjoyable and rewarding work that I
do. I realize that if it wasn’t for you reading it, I wouldn’t be here.
Thanks for making 2002 a great year! I hope you and yours have a happy and prosperous
03!
New Year’s Resolutions
Start thinking about your trading new year’s resolutions:
Here are a few to get you started:
1. Do nothing unless there is something to do.
2. Trade in the direction of the trend (or major
transition).
3. Use a three-pronged approach: Market/Sector/Stocks.
4. Believe in what you see, and not in what you believe.
5. Plan your trade and trade your plan.
6. Protective stops on every trade.
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..excellent….I enjoyed the chapter on trader’s psychology…..”
Ricardo A.
Portugal
