Sideways at best
Dave Landry is principal of Sentive
Trading, a money management firm, and a principal of Harvest Capital Management.
Mr. Landry is the author of two top selling books,
Dave Landry’s 10 Best Swing Trader Patterns And Strategies
and
Dave Landry On Swing Trading. If you would
like a free trial to Dave’s Nightly Swing Trading Alerts Report
click here or call 888-484-8220 ext.
1.
On Friday, the Nasdaq opened weaker and after bouncing around a
bit, it generally worked its way lower. It found its low around mid-day and then
traded sideways to higher for the remainder of the day.
The S&P put in a somewhat similar performance.
So what do we do?
I think the big blue arrows above tell
the story. There are only a few sectors that are in uptrends. Namely, they are
tobacco, foods, shipping, energies, and silver. This isn’t what a bull market is
made of. Therefore, until we see some sort of break higher in the overall
market, assume that the trend remains sideways at best.
As far as setups, recently mentioned Tidewater
(
TDW |
Quote |
Chart |
News |
PowerRating),
an energy play, still looks like it has the potential to continue higher out of a
pattern I call a Bowtie (email me if you need the rules). Just wait for an
entry since it has been trading mostly sideways lately.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. If you would like a free
trial to my trading service, click
here.