Three Reasons To Buy This Market
Looking to the indices, on Monday, the Nasdaq rallied early
but quickly found its high and began to sell off. However, it also quickly found
low and began to rally. Then, after a late-day correction, it resumed its rally
going into the close. This action has it closing well and suggests that it
has potential to resume its uptrend out of a pullback.
The S&P traded back and forth but also gained nice
traction going into the close. It too looks like it has the potential to resume
its recent up leg out of a pullback.
So what do we do? The indices are now set up as
pullbacks. Further, most sectors, especially technology related (with the
notable exception of biotech), remain set up as TKOs or pullbacks. And finally,
many stocks within those sectors are also set up. Therefore, with these three
pieces in place: market/sectors/stocks, the buy side remains the logical side to
play. However, since, like life, there are no guarantees in trading, make sure
you continue to wait for entries and honor your protective stops.
Looking to potential setups, Ryland Group
(
RYL |
Quote |
Chart |
News |
PowerRating),
mentioned recently and in the strong homebuilders(a), still looks like it has the
potential to resume its accelerating uptrend out of a pullback.
Best of luck with your trading on Tuesday!
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.