I have some good news!
Dave Landry is principal of Sentive Trading, a money management firm, and a
principal of Harvest Capital Management. Mr. Landry is the author of two top
selling books,
>Dave Landry’s 10 Best Swing Trader Patterns And Strategies and
>Dave Landry On Swing Trading.
If you would like a free trial to Dave’s Nightly Swing Trading Alerts Report
On Friday, the Nasdaq rallied in early trading but quickly found
its high and sold off hard. It then drifted sideways throughout the afternoon.
This action forms a bearish outside day down. Â
Ditto for the Ps. Â
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So what do we do? I’ve been complaining
about the market’s sideways movement. Well, I have good news (in addition to
saving a bunch on my car insurance), the market looks like its finally starting
to move. Of course, I wish it was to the upside but I’ll take what’s offered.
Give me an uptrend, give me a downtrend, OR give me a virgin margarita and a
fifth of Tequila. Getting back to the action, it’s not good. The indices failed
at multi-year highs. Should they continue to sell off, all those that bought in
the recent sideways range will be faced with a loss. On any subsequent rally,
they might want to get out at breakeven. This is known as “overhead
resistance.” Therefore, unless we go roaring back up very
quickly, start keeping an eye out (reminds me of the one-eyed prostitute joke)
for transitional (early trend) shorts. Don’t bet the farm until we see some
follow through though. On the long side, the commodity related areas
(gold, metals & mining, energies)Â remain in uptrends and only appear
to be pulling back. Â
As far as setups, Phelps Dodge
(
PD |
Quote |
Chart |
News |
PowerRating), in copper, looks like it has the
potential to resume its sharp uptrend out of a Trend Knockout (TKO, email me if
you need the rules). Wait for an entry though since it was hit hard on Friday.
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In case you were wondering….
No, it’s not just you. This has been an extremely difficult market to
trade.Â
Best of luck with your trading on Monday!Â
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. If you would like a free
trial to my trading service, click
here.
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