Nothing Much Has Changed
I’m a little under the weather tonight, so my commentary
will be somewhat abbreviated.
On Monday, the Nasdaq lapped higher, sold off and then
bounced going into the close. Once again, this market just can’t seem to get
going.
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The S&P ended flat after a choppy day.
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So what do we do? In general, nothing has changed. We
remain in a choppy, momentum-less environment. On the bright side (provided you
don’t care which way the market goes and only care about making money), I am
beginning to notice that many individual tech issues (namely biotech and the
semis) are either breaking down (following through) or set up on the short side.
And, as mentioned Friday, the fact that the VIX is approaching multi-month lows
could also spell trouble (or opportunity, depending on how you look at it).
Considering the above, continue to look to play both sides in this choppy
environment, but keep your longs on a short leash.
Looking to potential setups, Teradyne (TER),
mentioned recently and in the vulnerable semi equipment makers, still looks like
it has the potential to continue its rollover out of a Bow Tie.
ABGX Follow Up
I’ll catch up with the ABGX example on Tuesday. For now, if
you are a swing trading, a two-bar stop would be a good place for a trailing
stop. If you are longer-term oriented, above recent highs, circa 27 remains a
good spot for a protective stop.
Best of luck with your trading
on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
“….Landry
writes clear, lucid prose, and uses lots of examples. I like this book because
of Landry’s simple approach. He shows many useful trading ideas instead of
trading theory….. It’s a good introduction for a novice trader…..”
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