The charts point the way
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
On Tuesday, the NASDAQ worked its way
lower in early trading. However, it soon found its low and began to rally. This
buying accelerated late in the day. This action breaks it out to new 5-year
highs.Â
Ditto for the Ps. This action has it clearing
shorter-term resistance.Â
The sectors action was very positive.
The Semis, which had been stuck in a range, broke
out nicely to multi-month highs. Â
Software, which has generally lost momentum as of
late, broke out nicely to 5-year highs.
Retail, which has been questionable lately,
appears to be attempting to break out of its trading range.
Ditto for broker/dealer.
Other areas such as wireless, leisure, durables,
non-durables, chemicals, hardware, and Internet (to name a few) remain in
strong uptrends.
So what do we do? The
only negative is that commodities remain generally strong. I suppose there’s
always something to worry about. Therefore, commodities notwithstanding, I think
the charts point the way.Â
No setups tonight–Since the methodology requires
a pullback, there likely won’t be any while the market is in breakout mode.
Remain patient. If the market continues to follow through, we will see a
plethora of setups on the next pullback.
Wednesday’s With Dave
It’s that time again. On Wednesday, 11/16/06, at 11:00 AM EST, I will be hosting my weekly interactive lesson. This
week, in addition to current market and sector conditions, I plan discussing the
importance of sticking with your game plan and following your rules. After that, I will take your questions on individual issues or trading in general. As usual, admission is free (and I give money back guarantees if not completely satisfied!). However, the space is limited by the software. Email me if you need instructions on how to join (the same each week) or if you would like the archives for the prior year (covering topics such as money & position management, scanning, picking the best setups, sectors, longer-term trend following and a bunch of other stuff).
Best of luck with your trading on Wednesday!Â
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.