Here’s One To Bet On
I’m Dave Landry and I approved this column.Â
On Wednesday, the Nasdaq gapped higher and initially traded
higher but soon found its high and began to drift sideways to lower. The selling
accelerated late in the day as it sold off hard going into the close.Â
This action has it stalling and reversing after approaching
minor resistance around the area of its 200-day moving average.Â
The S&P put in a somewhat similar performance.Â
So what do we do?  The fact that the
indices reversed to close poorly after trading higher suggests that the last two
days were nothing more than a pullback. This action is further confirmed by the
fact that the vast majority of the 239 sectors that I track are in downtrends
and are also setting up as pullbacks. Therefore, the song remains the same: The
market remains in a downtrend and most sectors remain in downtrends. Therefore, continue
to look to play the short side.Â
As far as setups, Mandalay Resort Group
(
MBG |
Quote |
Chart |
News |
PowerRating), in the
weak leisure-resorts and casinos sub-sector, looks poised to resume its sharp
downtrend from all-time highs out of a pullback (See recent archives of this
column for more on why I like shorts that set up after a stock sells off from
new highs. Email me if you need links or pdfs.).Â
Ingersoll-Rand
(
IR |
Quote |
Chart |
News |
PowerRating), mentioned recently as a short
setup, still looks like it has potential (see the archive for Tuesday for more
on this pattern).
Best of luck with your trading on Thursday!
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.
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