Here’s An Interesting Way To Play The Strong Trend In The Energies
On Monday, the Nasdaq chopped mostly sideways to lower. This action puts it
below its recent trading range. This area is now overhead resistance.Â
The S&P chopped back and forth.Â
So what do we do?  It’s concerning that
all of the major indices are now below overhead resistance. This is a level
where investors may be looking to get out at breakeven. On additional weakness,
we will likely begin seeing transitional (i.e. early trend) shorts setting up.
For now, focus on energies since they remain in strong uptrends and can trade
independently of the overall market.Â
As far as setups, Itron
(
ITRI |
Quote |
Chart |
News |
PowerRating), a quasi energy
play (they make meters to measure energy usage), looks poised to resume its
strong uptrend out of a pullback.
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
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