Not A Good Story
So much for being
bullish. I guess my only saving grace is the fact that I emphasized
waiting for entries. And, fortunately, the new longs mentioned didn’t
trigger.Â
So what do we do?
Thursday’s action makes an oversold market more oversold. However, as
you know, this doesn’t mean that it can’t go lower. I guess I’ll give
my standard speech during these conditions: This is a damned if you do
and damned if you don’t environment. If you try to short, the market
will bounce from oversold. If you try to go long, “more
oversold” will become even more oversold. Therefore, look to play
both sides but play it close to the vest.
Looking to potential
setups, Serena Software (SRNA)
looks like it has the potential to rally out of a pullback.
Â
Â
Why Smoking Isn’t
Always Bad For YouÂ
As you know, one of
my catch phrases is “smoke ’em if you got ’em.“
For those new to the column, I’m referring to locking in profits when
blessed with a quick gain. Last night I showed that a quick profit (or
at least a piece) could have been taken on Genesis Microchip (GNSS)
(a), a stock mentioned recently. Notice on Thursday, after being up
over 5-points since first mentioned, that it dropped all the way back
to the entry (b).
Â
Quoting from my
favorite trader, in the bible on swing trading*, page 15, first verse
(and it’s bolded there too):Â
“Never,
never, never allow the above to happen to you. Not only is this
financially debilitating, but it’s also psychologically
debilitating.”
Best of luck with
your trading on Thursday!
 Dave
Landry
P.S. Reminder: Protective stops on
every trade!
*For those new to this column, the joke
flag is almost always flying.Â
Mathew M.Â
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