The Only Two Sectors I’m Concerned About
Looking to the indices, on Friday, the Nasdaq traded back
and forth in a fairly narrow range. It did improve going into the close but this
wasn’t enough to put it in the plus column.
The S&P put in a similar performance but was weaker
than the Nasdaq on a relative basis.
Looking to the sectors, like the market itself, most, with
the notable exception of gold and most metals, ended slightly lower. And, most
remain in uptrends, hovering at or near new highs. However, I’m still concerned about
the semis and retail. Both appear to
be stalling out before making it back to their old highs. This action could be
setting up head-and-shoulder tops in these areas. Therefore, it’s important for
them to make it back to new highs.
So what do we do? I’m not sure that there’s
much to do. The market remains somewhat overbought. Further, tonight (Friday),
my database produced very few meaningful setups. As I mentioned before, this is normally
a sign that I should wait for better opportunities (as opposed to trying to
make something). Therefore, assuming you played the last pullback and are long,
continue to manage what you have–keep stops in place and scale out/trail stops
on any follow through.
No setups tonight.
Best of luck with your trading on Monday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“….I just finished reading your book for the 3rd
time…the book has paid for itself trade after trade…thanks for a straightforward
swing trading manual! …”
Steve T.
