It’s not pretty
It’s Not Pretty
…warned the police officer as he checked our IDs. We arrived in what looked
like a war zone. Helicopters were flying overhead, debris
was scattered everywhere, entire houses were uplifted off their foundations and
moved blocks away. It stank. Boats were in trees, on roofs, and hundreds of
yards away from water.
Cars were thrown everywhere. One sign read:
“Looters will
die.” Some of the fire departments spray painted X’s had
numbers in them. Very sobering. When we arrived at my in-laws, we found a 5 foot water line and
3-4 inches of mud left inside.
Spirits were surprisingly high
though. On the third day of sweeping mud, knocking out sheet rock, throwing away
electronics, family heirlooms (including a rare first edition signed copy of
“Dave Landry On Swing Trading”), furniture, furnishings, and anything else of value you can
imagine, my mother-in-law said she had a sign for her front yard: “looters will be
disappointed.” She also came to the grim realization that
she would not win garden of the month. As then, there was this guy:
It’s The Storm Stupid
Katrina devastated an area the size of Great Britain. Believe me, it’s not a
race issue. People of all races are suffering. I worked for the last 4 days in an
affluent area near New Orleans.
From what I’ve seen, resources were scarce because New Orleans was taxing available
resources.
It’s not a political issue. Yes, there are a LOT of questions. However, they’re will be PLENTY enough time
to play Monday morning quarterback. For now, let’s keep our eye on the ball. How
can you help? From what I’ve seen personally, the
Red Cross is doing an
excellent job. Please donate.
Back To Work
I’m still picking up the pieces here and there. My house and office are intact
and dry but will need some work. It could be over a month before power is restored to my neighborhood.
My kids fine. They are being spoiled by their grandparents. Thanks mom and dad!!! I’ve got my computers, monitors, an am fully
functional. With that said…..
Come ‘on Throw Me A Bone!
I’m getting some hate mail on my recent recommendation to short Suncor.
Yes, In perfect hindsight, I never would have recommend shorting an oil company
if I knew a Cat 5 storm would knock down all the rigs and f’up 7 refineries. I’m
not God. If I were, I would have sent Katrina towards you (okay, I’m half kidding).
On Friday, the Nasdaq opened firmer but
soon found its high and began to sell off. It bounced in the afternoon but the
selling resumed late in the day. This action has it stalling near its recent
highs.
The S&P put in a similar performance. It too is
stalling near its recent highs. .
So what do we do? The indices are
stalling at minor resistance. This lack of follow through from last week’s rally
suggests that they still remain vulnerable. Therefore, continue to avoid new
longs. On the short side, the homebuilders appear to be stalling out and once
again look like they have the potential to continue lower. However, there
weren’t many meaningful setups here (or anywhere else for that matter).
Considering the above, wait until the market can show conviction–one way or the
other.
No setups tonight.
FYI
I plan on resuming my Wednesday
audio/visual presentation this week. It’s a zoo here but that should make it
even more interesting. Email me if you’d like a free link to participate and/or
the links to for participate and/or the links for the
12 months (covering entries, stops,
position management, damage control, scanning, sector analysis etc…). Note:
Obviously, I’m a little backed up in my emails but promise to answer each and
every one.
Thanks to everyone for all your well wishes!
Best of luck with your trading on
Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.