Keep Your Powder Dry

  • September 18, 2001
  • Dave Landry

 

On Tuesday, the Nasdaq lapped slightly higher but failed to
hold its gains. It then sold off to close poorly.

 

The S&P was also off, but
only slightly. 

 

The VIX ($VIX.X)
began to implode from its highest level since October of 1998. 

 

So what do we do? The fact that
the S&P stabilized combined with the decrease in the VIX is a positive. This
action sets up several Market Bias buy signals in a severely oversold
environment. And, like last night, under normal circumstances, I’d be very
excited about the potential for a bounce play. However, as you know, there’s
nothing “normal” about these circumstances.  We remain in a news–driven
environment. Therefore, once again, continue to keep your powder dry and remain
patient as this situation develops. I can assure you that there will be
opportunities in the coming weeks, months and years. In other words, the
markets will always be there.

No setups again tonight. I am
evaluating the potential for an upcoming bounce play in the index tracking
stocks. Further, I’m keeping an eye on numerous stocks in downtrends that may
set up as shorts after this bounce.

Random Thoughts

I find it interesting that all
these bears are coming out of the woodwork right as things are at their worst.
Where have these brilliant analysts been for the last year and a half? Although
it’s aggravating, raises my blood pressure and causes me to reach for the mute
on my remote, I view this as a positive development. 

Best of luck with your trading
on Wednesday!

Dave Landry

sentivetradingco@prodigy.net

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

 

P.P.
S.
I look forward
to meeting you in three weeks 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.

 

 

“…It is
clearly the best book on swing trading currently in the public domain…”

Stanley O.

 

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