The Three Things This Market Did Not Do

On Monday, the Nasdaq opened flat and after
trading on both sides of the market, began to rally. However, late in
the day, it gave up all of its gains to end up just about where it
started.

Monday’s action suggests last week’s low, around
1817, will be challenged.

 

The S&P also
reversed after trading higher.

 

So what do we do? The
fact that we did not see any follow through from Friday’s rally,
combined with several Market Bias sell signals has me somewhat
concerned. Therefore, until proven otherwise, we have to treat this
recent rally as a pullback from lows. Focus on the short side but wait
for continued signs of reversal. Also, keep positions small as
late-summer, pre-holiday volume will likely make for choppy trading.

Looking to potential setups, Lifepoint Hospitals
(LPNT)
looks like it has the potential to rally out of a Running Cup and
Handle.

On the short side, Broadcom (BRCM)
looks poised to continue its meltdown out of a Bow Tie/inverted cup
and handle.

Good News

The good news is that
I will no longer shamelessly plug my book.

With that said, check
out my Daily
Swing Trade Alerts. It’s awesome!

Best of luck with
your trading on Tuesday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on
every trade!

“…I
bought a lot of books, but sincerely, Dave Landry on the Swing Trading
is the best….”

Portugal

 

 

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