What this market is lacking
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
On Friday, the Nasdaq opened lower but it quickly reversed and
began to rally. However, it found its high in early trading and then drifted
sideways to lower for the remainder of the day. This action keeps it in a
trading range. Â
The S&P tried to rally but couldn’t get past resistance, circa
1310.  Â
So what do we do?  The market can’t seem to get anywhere.
It just continues to just bump along. This choppy action is frustrating
for the momentum trader–it’s hard to trade momentum when there is none.
Therefore, until we see a decent breakout (or a break down!), continue to trade
small or not at all. For the aggressive, the energies are now at an inflection
point. Transitional shorts (if you don’t have my 2nd book, email me for
descriptions and examples here) could pay off big here. “Could” is the
key word in that sentence though. As you know, with these early trend patterns,
you’re like a pioneer: you either get the gold or end up with an arrow in your
back. Â
No setups tonight.
Best of luck with your trading on Monday!Â
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.
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