Waiting For The Next Opportunity
On Monday, the Nasdaq opened firmer and chopped its way
higher. It gained momentum early in the afternoon and rallied to close well.
The S&P also put in an impressive performance.
So what do we do? Although Monday’s rally is impressive, I
think I’m going to remain in the “wait and see” camp. So far, especially in the
Nasdaq, it looks like it could set it up as a pullback from lows. Further, I
could get some timing signals triggering on the short side over the next few
days. So, start keeping an eye out for shorts. Don’t fight it yet though since
the tape remains strong. Use this opportunity to tighten stops/lock in partial
profits on longs.Â
No setups tonight, remain patient, we should get quite a
few shorts setting up soon.Â
Coach, should I stay or go?
Recently, I had discussed that breakeven plus
would be a good place for a stop (after taking partial profits) on Coach Inc.
(
COH |
Quote |
Chart |
News |
PowerRating)
(see archives on the bottom right side of this page for more details). I
also discussed that the recent
lows (a) would be a good place for a trailing stop. This way, barring overnight gaps, the worst you
could do was a slight profit on the remaining shares. And, as discussed
recently, would allow for a potential home run. Now comes the dilemma, the
stock hasn’t done anything “wrong” yet but also isn’t keeping up with
its brothers and sisters in the consumer non-durables. Therefore, you have to
decide whether you want to tie up capital (and risk exposure) or look for more
profitable avenues. For purposes of this walk though, we’ll keep our stop in
place to see what happens.
Brick House?
Beazer Homes
(
BZH |
Quote |
Chart |
News |
PowerRating), mentioned Friday night, was up
sharply on Monday. If you are lucky enough to be blessed with such a quick
profit, make sure you lock in a piece. For more on money management and position
management, see my articles on the subject under TM University.
It’s been a while since I’ve given something away. Tell me
why I am calling Beazer a brick house and I’ll give you 1-month free to my trading
service ($175 value). Hint, check the column archives. In the event of
multiple correct answers, I’ll randomly pick one on Wednesday.
Best of luck with
your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
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