One More Time
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On Friday, the Nasdaq gapped lower and chopped around. All
things considered, it held up fairly well.

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The S&P was hit especially
hard. This action has it closing poorly and just above the well-watched April
lows.

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The VIX continued to spike to
levels not seen since April.

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What’s interesting is that, the
Nasdaq 100 VIX ($VXN.X)
was up sharply but the Nasdaq 100 was only down slightly. I view this as the
sign of a potential bounce for the index as the last of the panic sets in.

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So what do we do? I think I’m
going to repeat my commentary from last night:
It’s probably too late to enter
new shorts due to the severe oversold nature of the market. The recent (and
repeat) Market Bias signals suggests that we could still get a bounce but, the
“blue arrow” continues to point down. Therefore, for the nimble only,
look to play the bounce but only on signs of a reversal. And, as always, wait
for entries. One last point (I bet you thought I forgot), remember, in general,
if you try to buy an oversold market, oversold will become more oversold. And,
if you try to short an oversold market, they it’ll bounce. So, whatever you do,
proceed with caution.
Looking to potential setups,
Gilead Sciences (GILD)
looks like it has the potential to rally out of a high level cup and handle.
On the short side, Optimal
Robotics (OPMR)
looks poise to resume its rollover out of a Bow Tie “kiss” type
pattern.Â

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Random Thoughts
At the time I’m writing this
piece, some guy on CNBC said you should continue to hold even “though this
minor turndown”. I reached for my remote so quickly I nearly through my
shoulder out of joint. Minor turndown? Last I checked, the Nasdaq would
have to rally over three hundred percent to get back to the March 2000 highs.Â
Speaking of the Nasdaq. We
should probably have a contest for whoever can guess when we hit those highs
again. I’d be willing to kick in some of my stuff and I’ll check with everyone
else for contributions. Let’s just hope we live to see who wins.
Anyone notice that tonight’s Momentum
10 Technology List only has 4 stocks? Now that’s what I call a bear
market!
Enjoy your weekend and best of
luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
I look forward
to meeting you in four weeks at TM2001.
Don’t hesitate to register, because in addition to showing you every important
variation on pullback setups, I’ll also be teaching you my
favorite new techniques including: how to capture trends before the crowd
using “transition in trend” patterns
and how to ride huge momentum off false moves…both
to the long and short side.
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Mr. Landry,
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
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Argentina
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