If you’re bullish, you must be smoking something
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
click here or call 888-484-8220 ext.
1.
On Friday, the Nasdaq sold off in early trading. It found its low
late in the morning and then chopped sideways for the rest of the day. This action puts the Nasdaq at new lows for the year.
The S&P also sold off hard.
So what do we do? The S&P has given up nearly all of
its 07/19/06 rally. Ditto for the Naz–and then some. I’m not going to
bore you with my “wait for follow through speech”–I think the
market action (or lack of market action!) speaks for itself. The sector action
is pretty bad too. The semis were short-circuited, retail was marked down,
hardware crashed, software was soft–well, you get the picture. In fact,
other than tobacco. Most all sectors remain in downtrends and near (or at) new
lows. So, unless you’re smoking something, the market sure looks bad.
One would think there would be a plethora of setups on the short side but
there isn’t. This makes sense because the methodology requires a pullback. And,
“the” pullback is already over. No setups tonight.
Best of luck with your trading on Monday!
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.