Please Don’t Read This Column

Please Don’t Read This Column

Recently I was accused of using a “catchy”
headline “so people would read my column.” Therefore, in order to stop
people from reading my column, from now on, all columns will be titled
“Please Don’t Read This Column.” So if you read it, please don’t email
me to tell me that you didn’t like it. After all, I asked you politely not to
read it.

On Tuesday, the Nasdaq traded mostly sideways before
rallying late in the day. This action has it closing well and it puts it back
above its 200-day moving average.

The S&P put in a similar performance.

So what do we do?
I like the fact that tech
(aka the Nasdaq) is pushing its way higher into overhead resistance. Maybe it
can lead us out of this mostly sideways trading that we’ve been experiencing.
Since the market has been choppy, you might want to wait for a decisive breakout
(i.e. for overhead resistance to be cleared), before looking to get aggressive.
In the meantime, focus on areas such as biotech that have been outperforming
the market. On the short side, the commodity stocks such as those mentioned
recently (e.g. AL, DO, NEM) are oversold. Therefore, wait for a pullback here
before looking to establish new positions.

As far as setups, Neurocrine Biosciences
(
NBIX |
Quote |
Chart |
News |
PowerRating)
,
in the aforementioned biotechs, looks like it has the potential to resume its
recent uptrend out of a First Thrust (email me if you need the rules).

FYI

On Wednesday, 05/18/05, at Noon Eastern, I will be doing my
weekly interactive presentation. This week I will discuss current market
conditions–focusing on those areas that could be turning the corner. I will also
touch upon the psychology of sticking to a methodology. Finally, I will cover
money and position management using recently mentioned examples. Email me if you
like instructions on how to join.

As mentioned recently, I have the past 9-10 months archived (covering topics such as
scanning,
sector analysis, entries, money and position management, potential
opportunities, market timing etc….). Watching these will give you a good feel
for how my methodology works–both good and bad. Email me if you are interested.

Best of luck with your trading on Tuesday!

Dave Landry

dave@davelandry.com

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

P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here
for details.