What My Database Is Telling Me
Looking to the indices, on Tuesday, the Nasdaq chopped back
and forth.
The S&P put in a similar performance
but managed to close in the plus column.
So what do we do? I’m still feeling constructive
towards the market (especially the S&P) but I am concerned that it hasn’t
followed though yet. Although most sectors still remain in uptrends, it
really hasn’t been extremely hard to find shorts lately (see notes below). Areas
such as metals & mining, gold, selected energy, homebuilders, and the semis
have all been setting up. I suppose the silver lining for Tuesday’s lack of
progress is the fact that the market did not come apart on the ricin
scare. Therefore, continue to focus mostly on the long side but wait for
entries since we haven’t seen much forward progress lately. On the short side,
look for opportunities in those weak areas mentioned above.
Looking to potential setups, (I know, I’m bullish but I
keep showing shorts. This is what happens when I “listen” to my
database), Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), in the weak metals & mining–aluminum sub-sector(a),
looks poised to continue its rollover out of an inverted cup and handle
formation.
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S.
This weekend I’m having a small, exclusive three-day swing trading seminar and I would like you to attend.
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