How To Profit From An Early August Stock Market Slide
On Friday, the Nasdaq rallied in early trading but found
its high by mid-day and chopped sideways-to-lower for the remainder of the day.
The S&P put in a somewhat similar performance.Â
So what do we do? Now that the market has
pulled back a bit, look to begin re-establishing positions on the short side.
Many sectors (like the market itself) are set up as pullbacks from lows.
Therefore, ETFs could be an easy way to play this next down leg (e.g. QQQ,SPY,
DIA,IBB,BBH,HHH,SWH,SMH).Â
As far as setups, Cymer
(
CYMI |
Quote |
Chart |
News |
PowerRating), in the weak semis,
looks poised to resume its persistent downtrend out of a Trend Knockout (TKO).
Note: since the entry is so far away, nimble traders may look to play an opening
gap reversal (should it occur). If you need more on info trading gaps, shorting,
the TKO pattern, or a primer on momentum based swing trading in general,
feel free to email me for links to articles and/or PDFs.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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