There’s Only One Thing That Concerns Me
Trail ’em If You Got ’em
Ryland Group
(
RYL |
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PowerRating), mentioned recently, moved up nicely
on Tuesday (a). When a stock moves in your favor like this, make sure you trail
your protective stop higher.
Looking to the indices, on Tuesday, the Nasdaq opened
slightly higher and after a brief dip, began to rally. It found its high by
mid-day and then traded generally sideways for the remainder of the day. This action has it closing well and just
shy of new closing highs for the year.
The S&P traded back and forth but did manage to close
in the plus column.
So what do we do? The action in the indices,
most sectors, and most stocks remains positive. There is one concern though, the VIX (and the
VXO) hit is
lowest levels in years. However, so far, I think market momentum trumps this.
This is especially true since the VIX isn’t stretched away from its 10-day moving
average (yet). Therefore, continue to focus on the long side but make sure you
are taking profits and trailing stops.
Looking to potential setups, Sandisk
(
SNDK |
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Chart |
News |
PowerRating), in
the strong computer hardware-data storage devices group, looks like it has the
potential to resume its strong uptrend out of a pullback.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
P.P.S. Learn my best swing
trading strategy in my new interactive CD-ROM. Click
here now for details.