This Stock Is Up Over 14% Since Mentioned But I Can’t Take ANY Credit For This
The Market Is A Bad Teacher
Halliburton
(
HAL |
Quote |
Chart |
News |
PowerRating) has rallied over 14% since mentioned. However, I can’t take
any credit for this. Why? Well, if you followed my general rules (email me if
you need a free copy of my Primer on Swing Trading), you would been stopped
out on 07/11/05 (a). OR, To those more experienced who use more
discretion (see my recent example on ITRI), you should have been stopped out as the stock took out the bottom of
its short-term trading range (b).
Although the stock subsequently takes off, I can assure you that they won’t
always do this. The market is if often the worst teacher–it lulls you into a
false sense of security. Honor your stops.
On Monday, the Nasdaq rallied in early trading but soon found its
high and then it sold off for the remainder of the day.
Ditto for the S&P.
So what do we do? The Nasdaq remains in a sharp uptrend and only
appears to be pulling back. I am somewhat concerned by the fact that the S&P
hasn’t made much forward progress lately. Ideally, I’d like to see some
acceleration to the upside here. So far though, I still think the long
side is still the side to play. Focus on technology but make sure you wait for
entries. On the short side, if you’re anxious to do something here, take a look
at the HMOs. They look poised to continue their recent rollover out of a First
Thrust.
As far as setups, the Biotech HOLDRS
(
BBH |
Quote |
Chart |
News |
PowerRating) look poised to resume
their sharp uptrend out of a pullback. Wait for an entry though since they were
down on Friday.
FYI
In case I don’t get to do a column on Tuesday night, I just wanted to
remind you that I have a weekly interactive audio/visual presentation
planned for Wednesday July 27 at 11:00 A.M. EST. Email me if you would
like to participate (it’s free but space is limited to 50).
Other
Special thinks to the OI Big Easy Trading Club for having me as their guest
speaker on Saturday.
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
here for details.