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 Friday, the Nasdaq chopped back and
forth throughout out most of the day but did manage to rally going into the
close. This action was enough to put it at a new 5-year closing high.
The Ps ended higher too. They remain shy of
resistance/their 5 year highs.
So what do we do?
With the Nasdaq at 5-year highs and the S&P just shy of 5-year highs (and,
of course, the big blue arrows), you can’t argue that the trend isn’t up.
However, there’s always something to worry about: I’m concerned that the S&P
remains below short-term resistance. Some sectors have lost momentum while
others appear to be in the early phases of forming a top. Many commodity related
areas (today notwithstanding) remain in strong trends. And finally, I’m seeing
more shorts setting up than longs. So is it time to call a top? No. A few big up
days would put the indices and many sectors decisively at new highs,
suggesting that this bull is alive and well. All things considered, I remain
cautiously optimistic.
As far as setups, for the aggressive, look to
fire off a short in areas that remain questionable such as retail. Just remember
to wait for entries and honor your stops since this would be a
“pioneer trade” (early trend).
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.