Little Vixy

  • July 3, 2001
  • Dave Landry

 

On Tuesday, the Nasdaq didn’t do a whole lot. It
chopped around in pre-holiday trading.

Tuesday’s action (if you want to call that) puts
it right at its 50-day moving average.

 

The S&P didn’t do
a whole lot either. Once again, it failed to get through the 1240
range. This action (again, if you want to call it that) keeps it in
the 1200 to 1240 range.

 

The VIX began to
bounce slightly,
which sets up a CVR II sell signal. The TRIN rose,
which sets up a TRIN Reversal sell signal and
the CHADTP fell,
which sets up a CHADTP sell signal. Further, the market, which
statistically* rises the day before this holiday, fell. All of the
above sets up a plethora of piñatas, I mean sell signals, on the Market
Bias Page.

So what do we do?  Considering the above, I
remain cautious and skeptical. Therefore, at the risk of being
redundant, keep it light on the long side and continue to look for
shorting opportunities.

Looking to potential setups, Human Genome
Sciences (HGSI),
mentioned Monday night, appears to be breaking down out of an inverted
cup and handle.

In spite of all my
late fees on Little Nicky, Blockbuster (BBI)
still looks poised to breakdown out of an inverted cup and handle.

Northrop Grumman (NOC),
mentioned recently, still looks vulnerable.

Whadda Ya Think?

To me, this stock
looks like its putting in a bottom. I may be wrong, I’d like to get
your opinion. Why don’t we take this discussion to the Swing Trade
message board.

No forgetee: No Tickee, No Tradee!

I just got an email asking me about what to do
with a stock I mentioned as a potential short weeks ago. The stock has
gone straight up since then. Luckily (for me), it never triggered.
Wait for entries! A simple rule like waiting for a stock to trade
below the prior one-to-two day’s lows (for shorts, use highs for
longs) might just keep you out of trouble.

Best of luck with
your trading on Thursday!

Dave Landry

sentivetradingco@prodigy.net

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

P.P.S. Happy 4th of July! To our
international readers, Happy Wednesday!

*”Statistics are worthless. 75% of
all people know that” Homer Simpson

“…Your
book is organized, concise and well documented in your charts. It is
an easy read for a great system..”

Eric L. 

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