Is The Dead Cat Really Dead?
On Tuesday, the Nasdaq lapped lower, but quickly reversed
and rallied for most of the day. Then late in the afternoon, it sold off to
finish not too far from where it started. This action suggests that its rally
from lows may be over.
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The S&P also appears to be stalling out. It too looks
poised to head lower out of a pullback from lows.
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So what do we do? The fact that the indices appear to be
rolling over, combined with the fact that there were very few meaningful long
setups (and many interesting short setups) suggests that we should focus on the
short side. As always, wait for entries and honor your stops ’cause that’s just
my opinion. I may be wrong.
Looking to potential setups, once again, the large
“money center” banks such as Bank One (ONE)
still look poised to continue their rollovers out of Bow Ties.
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Sepracor (SEPR),
in the weak generic drugs (and let’s face it, when you need drugs, you don’t
want weak ones), looks poised to continue its downtrend out of a pullback from
lows.
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I’m A Loser, Baby
On Monday night, I published an e-mail that asked why I
never show losing trades. Well, here’s one (thanks for jinxing me). Techne (TECH)
(a stock mentioned recently, see archives, Feb. 4 to date) gapped above its
recent highs (a) on Tuesday, stopping us out for a small loss. The moral? Read
the P.S.
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Walk Through Continued
When I last left off, I had discussed that breakeven-plus
would be a good place for a stop (after taking partial profits) on Coach Inc. (COH),
a stock mentioned recently. This way, barring overnight gaps, the worst you
could do was break even on the remaining shares. And this allowed for a
potential “home run” on the remaining shares. Well, on Tuesday it sold
off, but did not come all the way back to breakeven. Therefore, let’s assume
that the stop stands (a).
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Other
I was unaware until after the fact that they were not
videotaping my TradingMarkets2001 presentation. However, I noticed that someone
there was making a personal copy. I would love a copy for my own viewing. (I’ll
explain in further detail why if you contact me.) I would be happy to pay any
costs incurred to duplicate/ship the tape (and throw in a book and one
year of my trading service for your troubles). Please contact me via e-mail
if you have this or might know who does. Thanks!
Best of luck with your trading
on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
“……passing
on Dave Landry on Swing Trading because of its price tag would be a mistake.
It’s a detailed and understandable trading strategy book…..”
Active Trader
Magazine, February
2002 issue.
No risk, 30-day, money
back guarantee.