Watch these 2 stocks, they’re ready to move
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, href=”https://tradingmarkets.comtmu/store.site/swingtrading/Books/6109/”
>Dave Landry’s 10 Best Swing Trader Patterns And Strategies and
href=”https://tradingmarkets.comtmu/store.site/swingtrading/Books/6082/”
>Dave Landry On Swing Trading.
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On Tuesday, the Nasdaq opened slightly
firmer but soon found its high and began to sell off. It found its low in early afternoon trading and
began to rally. However, the selling resumed going into the close.

The S&P put in a somewhat similar performance.

Except for areas such as metals & mining and
the energies, the sector action remains generally poor. Retail looks poised to
continue lower. Tech areas that have been recently strong such as biotech
are beginning to show signs of rolling over. Other tech areas such as the semis
and software have been generally trending lower (like the Nasdaq itself).

So what do we do? Everyone seemed to
be looking for a “Rita’s not at bad as we thought it would be” rally
on Monday. And we got it. However, the market failed to hold on to its gains and
now looks like it’s resuming its shorter-term downtrend. This action is
confirmed by the aforementioned poor sector action. Therefore, on the long side, continue to focus on those areas
in strong uptrends that can trade independently of the indices (e.g. energies
and metals & mining). On
the short side, continue to look to establish (or re-establish) new positions in areas in
strong downtrends that have recently pulled back such as retail and
leisure.
As far as potential setups, Petroleo Brasileiro
(
PBR |
Quote |
Chart |
News |
PowerRating)
looks like it has the potential to resume its accelerated uptrend out of a Trend
Knockout (as usual, email me if you need the
rules).

Autozone
(
AZO |
Quote |
Chart |
News |
PowerRating), mentioned recently and in the weak retail sector, still looks like it has the potential to
resume its accelerating downtrend out of a pattern I call “Accelerating
Momentum Strategy” (as usual, email me if you need the
rules).

FYI
On Wednesday at 11:00 A.M. Eastern, I will be doing my weekly audio/visual
interactive presentation. Email me if you need instructions on how to join (the
same each week). Admission is free but limited (by the software). I also have the links to
the prior year available (covering subjects such as
money management, position management, entries, damage control, scanning
etc..).
Best of luck with your trading on
Wednesday!
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.