Thoughts From A Trend-Following Moron
I’m Dave Landry and I approved this column.
Email Of The Day
Do you realize you basically just wrote: “If the markets go up, then that’s bullish, and you
should be long in a bull market.” How anyone could benefit from that manure is beyond me.
Here’s a picture of the button that I wear. Questions?
Speaking of trend, in Wednesday’s column, I’ll show my one
of my favorite indicators for determining trend.
On Tuesday, the Nasdaq opened weaker but generally chopped
its way higher throughout the day. Although it sold off late in the day, it
managed to recover nicely going into the close.
The S&P put in a somewhat similar performance.
So what do we do? So far, so good. The
S&P is less than 2% away from new highs for the year. And yes, I define a bull
market as a market that is making new highs. Therefore, now is the time to
continue to watch areas that you might want to get long. Stronger areas such as
retail, Internet, and banks may be a good place to look. If tech areas such as
the semis, software, and telecom can continue to carve out a bottom, they too
could be worth a look. Avoid areas such as biotech that seem to be ignoring the
rally. One caveat though: since the market is overbought shorter-term, you
might want to wait for a pullback before looking to jump in.
As mentioned Monday night: Since my methodology requires a pullback
(vs. playing breakouts), there aren’t many meaningful setups (again) tonight. Remain
patient. Unless the market turns right back down, we should see plenty of stocks
setting up soon.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here to learn
more, or to order.