Look To Get Long Now That The Indices Are Pulling Back
On Wednesday, the Nasdaq opened weaker and initially
continued lower. However, it found its low in early trading began to rally. It
then stalled near Tuesday’s close and generally sold off for the remainder of
the day.Â
The S&P put in a similar performance.
So what do we do? The trend in the indices is up. The trend
in the majority of the sectors remains up*. And, the trend in most stocks
remains up. In fact, now that the indices have begun to correct, my database is
generating a plethora of buy setups. Therefore, focus on the long side but wait for
entries (or signs of a reversal) since the indices are pulling back.
Looking to potential setups, Education Management
(
EDMC |
Quote |
Chart |
News |
PowerRating),
in the strong education & training services sector (and let’s face it, who wants a weak
education?), looks like it has the potential to continue its strong uptrend out
of a pullback.
Smoke ’em If You Got ’em
Tol Brothers
(
TOL |
Quote |
Chart |
News |
PowerRating), in the strong
homebuilders, has rallied nicely since first mentioned. When blessed with such a
nice, quick profit, make sure you lock in a piece and move your stop to
breakeven on your remaining shares.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
*Even airlines are up but comforters are still
down.
“….. It was super book and helped me quite a bit orchestrate many of the individual tools and rules I had been reading about into an integrated trading strategy. Anyhow, thanks for great book and great web site…”
Marty
