Since The Market Is Giving Mixed Signals, Focus On These Areas
range trading. It did manage to firm in late afternoon trading.
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The S&P put in a similar performance but wasn’t as
strong in late-day trading.
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In the sectors, the commodity related areas (metals &
mining, including gold & silver and energies), finished lower but only appear
to be pulling back. They look poised to resume their strong uptrends. In
tech, Internet, telecom, and software are set up as a pullbacks. However, the
semis continue to lag. On the downside, the financials (including broker/dealer)
seem to have stalled short of their old highs. The homebuilders still appear to
have put in a stop.
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So what do we do?
Since the overall market
isn’t showing much conviction and the sector action remains mixed, you’re
probably better off sticking with those issued that can trade independently of
the indices.
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As far as setups, considering the above,
Southern Peru
Copper
(
PCU |
Quote |
Chart |
News |
PowerRating), in the strong copper sector, looks poised to its strong
uptrend out of a pattern I call a Double Top Knockout (DTKO–as usual, email me
if you need the rules).
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Best of luck with your trading on Tuesday!
Dave Landry
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.
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