Listening To The Database

On Friday, the Nasdaq gapped open lower and
chopping around for much of the day, managed to close slightly higher. 

 

The S&P also
closed slightly higher. This puts it in an area of overhead
resistance.

 

So what do we do? The whole world thought the
bull had returned on Thursday. Funny, were where these euphoric buyers
today? True, the market did close higher, but it wasn’t enough follow
through to convince me that all is well in world. Therefore, I remain
in wait and see mode. At times like these, or any time for that
matter, I like to listen to what my database is telling me. Tonight,
through scans and flipping through charts, I’m seeing a lot more
interesting stocks on the short side than the long. Some of these are
as follows:

Abgenix (ABGX)
looks like it may have put in a major top and looks poised to
breakdown out of a Bow Tie.

Protein Design Labs (PDLI)
also looks poised to break down out of a Bow Tie (a).

Fuera!

Lately, we’ve been looking at where we could have
entered, taken partial profits and tightened stops on Human Genome
Sciences (HGSI),
a stock mentioned recently. If you haven’t read these commentaries,
now might be a good time before proceeding. 

On Friday, HGSI rallied above our two-bar high
trailing stop to stop us out of any remaining shares. At the risk of
preaching, keep in mind that as a swing trade, there’s nothing wrong
with locking in a piece or all of the profits, along the way on stocks
that make such sharp moves.

Thanks for all the the kind words on this walk
through. I promise to do more in the future.

For more information on money management and
position management read my articles under Traders
Lessons.

Best of luck with
your trading on Monday!

Dave Landry

sentivetradingco@prodigy.net

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

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