Never Play Cards With A Man Named Doc

On Tuesday, the Nasdaq opened flat and after
briefly blipping up, sold off…hard. 

This action has it closing poorly and closing in
on last week’s lows.

 

The S&P was also
hit hard.

 

Tuesday’s action
exemplifies why you should not trust a bear market. Sure, everyone
felt great last Friday (including me!) and many, for fear of being
last, called a bottom (not me!). This is why I did not take the
pullback from lows in the indices and Market Bias sell signals
lightly. Asking yourself a simple question such as  “What is
the current market environment?” (hint, the answer now is
a bear market*) and taking a “show me” approach will keep
you out of a lot of trouble.

So what do we do? I
think we still have some additional room to the downside
,
at
least until last week’s lows are challenged. Therefore, I think the
focus should remain on the short side.

Looking to potential setups, Intermune (ITMN),
mentioned recently, still looks like it has the potential to resume
its strong uptrend.

On the short side, Best
Buy (BBY)
looks poised to continue its rollover out of an inverted cup and
handle.

Broadcom (BRCM),
mentioned Monday night, still looks vulnerable.

Best of luck with
your trading on Wednesday!

Dave Landry

*At least that’s what the sticky
note
on my quote monitor says.

sentivetradingco@prodigy.net

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

“…I
bought a lot of books, but sincerely, Dave Landry on the Swing Trading
is the best….”

LLIDO F.

Portugal

 

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