Trade When Conditions Favor Your Methodology
On Tuesday, the Nasdaq opened higher but quickly reversed
and began to sell off. However, it found its low in early trading and began to
rally. Then, after drifting sideways to lower throughout mid-day, it resumed its
rally late in the day. This action has it reversing after tagging its 50-day
moving average.
The S&P put in a somewhat similar performance.
The 200-day moving average (circa 1120), which also
corresponds with overhead supply, could provide resistance here.Â
So what do we do? When conditions are
favorable for my methodology (momentum based swing trading), setups “jump
out” at me. I find decent setups within minutes. When conditions are
less-than-ideal, I find myself tooling though charts over and over again–trying
to make something happen. Well, tonight (Tuesday) was one of those nights. True,
most commodity related stocks are going to the moon, but since my methodology
requires a pullback, I’m not seeing any new setups here.
No setups tonight.Â
Best of luck with your trading on Wednesday!Â
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.
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