Listening To The Database
On Wednesday, the Nasdaq lapped higher and chopped around.
The good news (for longs) is that it closed on one of its upswings.
The S&P put in a more solid performance.
The VIX is closing in on levels not seen since last summer.
What’s also interesting is that it is now “stretched” to the downside
by being more than 10% below its 10-day moving average. In other words, it’s a
CVR-III sell signal. Why do I look at this? Because this is a system that I
co-created (with Larry Connors) and it has stood the test of time. No guarantees, just
probabilities.*
So what do we do? The tape remains strong but you can’t
ignore the above. Also, lately, it’s been harder and harder for me to find
setups on the long side and very easy for me to find setups on the short side.
This “listening to the database” often pays off. Therefore, look to
play the short side but don’t fight the tape — wait for entries.
Looking to potential setups, once again, the large “money center” banks
still look vulnerable. I think tonight, I’m going to swap out Bank One
(
ONE |
Quote |
Chart |
News |
PowerRating),
mentioned recently, for Goldman Sachs
(
GS |
Quote |
Chart |
News |
PowerRating) (I also think the broker/dealers
are vulnerable too).
Sepracor
(
SEPR |
Quote |
Chart |
News |
PowerRating), mentioned Tuesday night and in the weak generic drugs,
still looks poised to continue its downtrend out of a pullback from lows.
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 |
Quote |
Chart |
News |
PowerRating),
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. On Wednesday, it sold
off slightly before reversing. Therefore, let’s assume that the stop that
the stop stands (a).
Other
I was unaware until after the fact that they were not
videotaping my Trading Markets 2001 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 email if
you have this or might know who does. Thanks!
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*”Statistics are worthless, 75% of all
people know that.”
Homer
Simpson
“……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.