On Smoking And Feeling Good
On Wednesday, the Nasdaq lapped higher on the open and
after a brief blip up, resumed its sell off. Then, early in the afternoon, it
found its low and rallied back into the plus column.
The S&P took out its recent lows but reversed to close
well.
So what do we do? Obviously, it appears the bounce is
under way. However, until proven otherwise, I will assume that this is just short
covering because the blue arrows are still pointing down. This doesn’t
mean we can’t play it though. Just don’t bet the farm, honor your stops and
above all, wait for entries.
Looking to potential setups, Varian
(
VAR |
Quote |
Chart |
News |
PowerRating) looks like it
has the potential to resume its uptrend out of a pullback/micro cup and handle.
Coaching You Through Coach
Recently, I had discussed that breakeven plus
would be a good place for a stop (after taking partial profits) on Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating)
(see archives on the bottom right side of this page for more details). On Tuesday night, I discussed that the recent
lows (a) would be a good place for a trailing stop. This way, barring overnight gaps, the worst you
could do was a slight profit on the remaining shares. And, as discussed
recently, would allow for a potential home run.Â
The Feel Good Index
Tuesday night I discussed the fact that right when you are
feeling good about the markets (and profits) it’s often the best time to be
exiting. On Wednesday morning, shortly after the opening blip up, it felt really
good (on the short side) as the market resumed its sell off. However, it is at
this exact time, when you feel your best, that you must start locking in
profits. It’s OK (and advisable) to let a piece run just in case, but make sure
you catch the lion’s share.
Why Smoking Isn’t Always Bad For You
On Tuesday night, I also discussed the fact that you should lock
in partial profits when blessed with a quick gain. Notice that my example
Goldman
Sachs
(
GS |
Quote |
Chart |
News |
PowerRating) ended up sharply after a flat opening. As you can see, when you
are fortunate enough to have a quick profit, you should “smoke ’em if you
got ’em” (take partial profits).
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Still Pleading
I was unaware until after the fact that they were not
videoing my Trading Markets 2001 presentation. However, I noticed that someone
there was making a personal copy. I would love a copy for my own viewing (I’ll
explain in further detail why if you contact me). I would be happy to pay any
costs incurred to duplicate/ship the tape (and throw in a book and three
years of my trading service for your troubles). Please contact me via email if
you have this or might know who does. Thanks!
Best of luck with
your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“……I want to send you this note to thank you for the excellent book that you
have written. I have enjoyed so much reading your book and I appreciate for your hard work, creativity and professionalism. Your book is a must-read
for every serious trader. It is simple, concise and to the point, but also full of useful detail. Again, thank you for such a wonderful job….”
Pablo
(Argentina)
No risk,
30-day, money back guarantee.
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