The one thing this market is lacking
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.
New To Trend Trading?
Based on recent emails, I thought now would be a good time to re-publish an
intro article to momentum based swing trading. However, I was unable to find it
by my deadline. I will re-publish this soon. In the meantime, email me if you
would like a free copy of my swing trading primer.
On Friday, the Nasdaq chopped sideways in early trading, rallied
mid-day, but then sold off hard late in the day.
The Ps put in a similar performance. This action puts them back below
their 50-day moving average.
So what do we do? As I always preach, follow through is
key. And so far, we haven’t seen any follow though from the 06/29/06 rally. In
fact, the Nasdaq has now given up the majority of those gains. Although the
S&P has fared a little better, it’s being held up mostly by commodity
related stocks–15 out of 20 of the strongest stocks here are either metals
& mining or energy related. Therefore, outside of commodity related stocks,
avoid the long side for now.
As far as setups, Range Resources
(
RRC |
Quote |
Chart |
News |
PowerRating) looks like it has the
potential to resume its uptrend from its first pullback. This is similar to the
First Thrust pattern–email me if you need the rules.
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.