Study These Areas Before You Buy
On Friday, the Nasdaq opened flat but soon found
its low and began to rally. Then after some mid-day consolidation, it resumed
its rally. This action has it closing well. Â
The S&P put in a similar performance but was much more
impressive. Â
In the sectors, even with today’s rally, many such as banks
and other financials still look vulnerable. Retail remains in a wide-and-loose
trading range. Most areas of technology continue to under perform. In
fact, Internet, telecom (most), and software all ended lower on Friday. The
semis are the one bright spot here. Their recent transition from downtrend to
uptrend appears to remain intact. On the up side, most commodity related areas
such as metals & mining and the energies (and energy related such as
shipping) remain in sharp uptrends–with many at or near all-time
highs. Â
 So what do we do? The S&P’s recent
performance is impressive. However, it still remains short of its old highs.
Technology continues to under perform–just look at the big blue arrow in the
Nasdaq (above). The commodity related areas look great. And, as you know,
they can rally with or without the market. My only concern here is that they are
very extended and due for a pullback. Considering the above, continue to manage
existing positions and wait for follow through in the overall market before
initiating new ones.Â
No setups tonight.
Housekeeping
Thanks for all of your request for the archives of my
weekly audio/visual presentations. I should be caught up with these soon.Â
Best of luck with your trading on Monday!Â
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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