Until The Market Follows Through, Focus On This Area
On Monday, the Nasdaq opened slightly firmer but found
its high by mid-day and then traded mostly lower throughout the rest of the day
(in a choppy fashion).
Ditto for the Ps.
So what do we do? Well (in my best Ronald
Reagan accent), this is where I give my “lack of follow through”
speech. Friday’s rally was impressive but, as you know, there was no additional
upside on Monday. Therefore, on the long side, focus on commodity related areas
such as the energies (and energy related such as Shipping). On the short side,
continue to manage existing positions vs. initiating new ones.
As far as setups, Tidewater
(
TDW |
Quote |
Chart |
News |
PowerRating), in the strong
shipping/oil services sector, looks poised to resume its uptrend out of a TKO. As usual, email me if you need the rules
for the pattern.
Quicksilver Resources
(
KWK |
Quote |
Chart |
News |
PowerRating), mentioned recently and in the
aforementioned strong energies, still looks poised resume its sharp/accelerating uptrend out of a
Trend Knockout (TKO).
Best of luck with your trading on Tuesday!
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.