The Path Of Least Resistance
On Tuesday, the Nasdaq opened flat and chopped around
for most of the day. Then, late in the afternoon, began a persistent sell off
that carried the index into the close. This action suggests it is continuing its
downtrend out of a pullback and that it will challenge its recent (which are
also five-year) lows.
The S&P also sold off late in the day.
So what do we do? Well, it appears that my big blue arrows
still work.* Said another way, the path of least resistance remains down. However,
based on the magnitude of Tuesday’s move, you might want to stick with the
issues in deeper pullbacks (i.e., not oversold). Also, it’s probably a good idea
to begin taking partial profits and trailing your stops.Â
Electronic Data Systems
(
EDS |
Quote |
Chart |
News |
PowerRating), in the weak software:
information service sector, looks poised to resume its meltdown out of a Trend
Pivot Pullback.
Best of luck with
your trading on Wednesday!
Dave Landry
P.S. Join me in TradersWire on
Thursday, July 11 at 4:30 PM EDT for a special TraderTalk session. I’ll be going
over some of my strategies and techniques.
P.P.S. Reminder: Protective stops on
every trade!
*Please, no nasty grams, I didn’t invent these things nor do I have any
control over which way they point.
“……I just finished reading your book on swing trading and must say that it is
one of the best book I have ever read. (That’s saying a lot because I have read many books on trading)….”
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