Where I’m Finding Setups
Looking to the indices, on Wednesday, the Nasdaq opened
weaker but found its low fairly quickly and began to rally. Then after some
mid-day drifting, it resumed its rally. It dipped again late in the afternoon
but reversed to close on its highs and at a new closing high for the
year.
The S&P chopped back and forth in a narrow range. It
remains stuck in a trading range.
Looking to the sectors, areas setup as pullbacks such as
retail and cyclicals appear to be attempting to resume their uptrends. The
semis, which were setup up as a TKO, rallied to a new closing high.Â
So what do we do? The fact that those sectors
that were setup coming into today (Wednesday) rallied is encouraging. Therefore,
continue to focus on the long side but keep it light for the same reasons
mentioned on Tuesday:Â a) the S&P remains stuck in a trading range and b) it could be thin
and choppy as Labor Day weekend draws near. Â
Looking to potential setups, Deere & Co.
(
DE |
Quote |
Chart |
News |
PowerRating)
mentioned recently and in the
strong cyclicals, still looks like it has the potential to resume its accelerating
uptrend out of a Pullback/Trend Knockout (as usual, if you need the rules, shoot me an
email).
Best of luck with your trading on Thursday!
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….”
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