Two Things You Should Be Doing In This Market

On Tuesday, the Nasdaq worked its way higher in early
morning trading, traded sideways throughout mid-day, jerked around on some news
(wonder why? I dunno, I don’t follow news, just arrows), and then sold off. It
did manage to stay in the positive column though.

The S&P put in a somewhat similar performance but ended
in the minus column. This action has it testing the top of its recent trading
range. 

So what do we do?  Well, so far, it’s more of
the same: range bound trading. Yes, the big blue arrow still points down, but
shorter-term, it’s choppy and sideways. When this occurs I do two things 1) look
for opportunities in commodity related areas that can trade independently of the
indices and 2) decrease the amount of trading or avoid new trades all together
(outside of commodity related stocks). As far as the former, gold stocks and
most other metals & mining look like they have the potential to resume their
downtrends out of big picture tops and/or pullbacks. Energies could also set up
again as shorts soon too.  Therefore, look for shorting opportunities in
these areas. 

As far as setups Newmont Mining
(
NEM |
Quote |
Chart |
News |
PowerRating)
looks
poised to resume its accelerated slide out of a pullback. 

 FYI 

On Wednesday 05/04/05  at noon Eastern, I will be
doing my weekly interactive audio/visual. I know I say this every week, but this
week I really do have some GREAT examples. Email me for a link if you would like to
participate or if  you would like links to the archives of the past 9-10 months (covering topics such as
scanning,
sector analysis, entries, money and position management, potential
opportunities, market timing etc….).   

Best of luck with your trading on Wednesday!

Dave Landry

dave@davelandry.com

P.S. Reminder: Protective stops on every trade!

P.P.S. Learn my newest and most advanced version of my Bow
Ties Strategy. Click
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