Trading this market isn’t rocket science, here’s why
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
On Tuesday, the Nasdaq sold off hard throughout the morning and then
drifted mostly sideways for the remainder of the day. This action puts it back
below its 50-day moving average.Â
The S&P also sold off fairly hard. Â Â
So What Do We Do? As you can see by the big blue arrows above, the market
remains in a sideways trading range. It doesn’t take a rocket scientist (which I
am by the way) to realize this. And, it certainly doesn’t take
a rocket scientist to know that this does not bode well for the momentum based
trader. The good news is, commodity related areas such as gold, metals & mining, and
the energies look like they are in the early phases of a new trend down.
Therefore, focus on these areas (as shorts), especially since they can trade
independently of the overall market.Â
As far as setups, Ultra Petroleum
(
UPL |
Quote |
Chart |
News |
PowerRating) in the aforementioned energies,
looks poised to resume its recent slide out of a First Thrust (email me if you
need the rules of the pattern).Â
Weekly Interactive Lesson
It’s that time again. On
Wednesday 2/08/06 at 11:00 AM EST, I will be hosting my weekly interactive
lesson. In addition to the above, I have some great examples (if I say so
myself!), on money management, why you shouldn’t micro-manage your trades, how
to squeeze additional profits out of a trade, and a bunch of other stuff. I’ll also
take your questions on individual stocks and trading in general. As usual, admission is free but the
space is limited by the software. Email me if you need instructions on how to
join (the same each week) or if you would like the archives for the prior year
(covering a plethora of topics).Â
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. If you would like a free
trial to my trading service, click
here.
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