What The Market Didn’t Do
Looking to the indices, on Monday, the Nasdaq traded back
and forth in a narrow range. It did manage to close well though. Â
The S&P put in a similar performance.Â
So what do we do? It’s not so much what the market did on Monday, it’s what
it didn’t do. It didn’t come unglued on the heels of Friday’s false
breakout. Although, I really hate to read too much into late summer, light
volume trading, the fact that the market stabilized is a positive. Also, I’m beginning to see setups on the buy side in areas
such as retail, cyclicals, and semiconductors. However, since the S&P
remains stuck in a trading range and volume remains light as summer winds down,
I don’t see any reason to get aggressive. Therefore, look to nibble in those
stronger sectors mentioned above but wait for signs that their uptrends are
resuming (e.g. entries).Â
Looking to potential setups, Deere & Co.
(
DE |
Quote |
Chart |
News |
PowerRating) in the
strong cyclicals, looks like it has the potential to resume its accelerating
uptrend out of a Trend Knockout (as usual, if you need the rules, shoot me an
email).
Best of luck with your trading on Tuesday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“…..The best thing about Dave Landry on Swing Trading is that it is so easy to read and understand. Examples are numerous and the theme of money management – with concrete examples – is repeated throughout the entire book….”
Active Trader Magazine
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