Waiting for this can keep you out of a lot of trouble
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
click here or call 888-484-8220 ext.
1.
On Tuesday, the Nasdaq sold off hard, traded sideways, and then
sold off again. Although it did bounce going into the close, it still lost
nearly 1 1/2 percent.
The S&P put in a similar performance but its late-day bounce back was
stronger.
So what do we do? As I preach, follow through is key. And
lately, there hasn’t been much. I think as long as the big blue arrow is
pointing sideway in the Ps (the S&P), you probably should avoid getting too
aggressive on either side of the market. If you do trade, it’s probably safer
(but remember safe and trading are an oxymoron) to err on the side of being
short. I’m basing this on the fact that major oil stocks are hovering near all
time highs and the semis and other tech like Internet remain in solid
downtrends. Further, areas outside of tech like retail also remain in a
downtrend. And last but not least, each day there seems to be a “debacle de
jour” either in individual stocks or sectors themselves.
No setups tonight.
Wednesday’s With Dave
It’s that time again. On Wednesday 08/02/06 at 11:00 AM EST, I will be hosting my weekly interactive lesson.
In addition to market and sector conditions, I will continue to harp on my
“follow through is key” theme. I promise to keep signing to a minimum
so I should have plenty enough time to take your questions on
individual issues or trading in general. As usual, admission is free (and I give money back guarantees if not completely satisfied!).
However, 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 topics such as money & position management, scanning, picking the best setups, sectors, longer-term trend following and a
bunch of other stuff).
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.