If You Are Long This Market Then You Should Do This
Looking to the indices, on Thursday, the Nasdaq gapped
higher, dipped, but then generally worked its way higher throughout the rest
of the day. This puts it at its highest levels since the summer of ’01.
The S&P was a little more choppier but did manage to
close at one year plus highs once again.
So what do we do? Yet again, overbought became even more
overbought. One may wonder if this market will ever correct. Don’t worry, it
will. Guaranteed. Until it does, I still think the best course of action is to
stick with those areas that can trade contra to the overall market and/or those
areas that have already pulled back. And, once again, metals/mining and energy
stocks fit this bill. Therefore, continue to look for
opportunities in those areas and continue to wait for a pullback before considering any
general buying. On existing longs, don’t look a gift horse in the mouth–take
partial profits and trail your stops higher.
Looking to potential setups, Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating),
mentioned recently and in the strong independent oils(a), still looks like it
has the potential to resume its persistent uptrend out of a TKO.
Best of luck with your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my 10 best swing trading patterns and strategies in my new book.
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