Impressive, But

  • September 27, 2001
  • Dave Landry

 

On Thursday, Nasdaq opened flat and began to sell
off. Then, late in the day, it rallied to close well. It wasn’t enough
to get it into the plus column, but it was a decent rally nonetheless.

 

The S&P put in a
more impressive performance. It managed to tack on 1%.

 

So what do we do? The
intra-day reversal is very impressive but momentum still favors the
short side. Therefore, continue to focus mostly on the short side.
Also (I bet you thought I forgot),  remember that we remain in an
event–driven
environment. Therefore, continue to keep it light. 

Looking to potential setups, many banks remain
set up as pullbacks from lows. Northern Trust (NTRS)
is one of them.

 

Comerica (CMA),
mentioned Wednesday and in weak bank sector, remains set up as a
pullback from lows. 

Example Time

Persistency is quite
simply how the stock continues in the direction of the trend. It is
probably the best thing to look for when looking for setups.  In
the past, I’ve experimented with various techniques to identify it
(see Dave Landry On Swing Trading or my article on Stock
Selection), but have settled on a simple “eyeballing.“
When you look at a chart, notice if the price goes mostly with the
trend or tends to chop around. You might also want to draw a line (or
lines) through the chart to see how many bars you can intersect. 

 

Best of luck with
your trading on Friday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on
every trade!

P.P.S.
I look forward
to meeting you next
week at TM2001.
Don’t hesitate to register, because in addition to showing you
every important variation on pullback setups, I’ll also be teaching
you my favorite new techniques
including: how to capture trends before the crowd using
“transition in trend” patterns
and how to ride huge momentum off false moves…both
to the long and short side.

“…Your
book was the best. I’ve read dozens of stock market books but when I
finished yours, something clicked. Thanks for writing it and your
column and I’ll see you in Vegas….”

Regards,

Dave (aspiring trend following moron) 

 

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