This stock looks poised to resume its uptrend
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
at=st”>click here or call 888-484-8220 ext. 1
Continued Thanks!Â
Thanks for your continued well wishes regarding Hurricane Katrina. Again, my
family and I are fine. However, many others are far less fortunate. Therefore, I
wanted to continue to thank you for your ongoing donations to the Red
Cross and other relief organizations.
On Tuesday, the Nasdaq sold off early but
found its low by mid-morning and began to rally. However, it stalled out late in
the day and then sold off hard going into the close.
The S&P put in a similar performance but lost
more ground on a relative basis. This action has it stalling short of its old
highs.
So what do we do? The sector action,
in general, remains constructive. However, the fact the S&P sold off
hard after stalling short of its old highs is concerning. Therefore, on the long
side, focus on areas that can trade independently of the indices. These include
commodity related sectors such as steels & iron. Outside of that, focus on
those areas that have been extremely strong as of late such as selected
materials & construction. On the short side, retail remains weak and looks
poised to resume its slide out of a pullback.
As far as potential setups, Sterling
Constuction
(
STV |
Quote |
Chart |
News |
PowerRating), mentioned recently and in the strong Materials &
Construction–Heavy Construction
sub-sector, looks poised to continue higher out of a pattern I call
“Accelerating Momentum Strategy”. Email me if you need the
rules.Â
FYI
On Wednesday 09/14/05, I will be doing my weekly audio/visual interactive
presentation. We’ve got some great examples this week–some stuff worked and
some stuff didn’t. Email me if you need instructions on how to join (the same
each week). Admission is free but space is limited. Also, email me if you would
the recording to this and sessions for the prior year (covering subjects such as
money management, position management, entries, damage control, scanning
etc..).Â
Best of luck with your trading on
Wednesday!
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.