Why I Think The Nasdaq Will Break Through 2100; Here’s Where You Should Focus Until It Does
On Tuesday, the Nasdaq chopped back and forth in a fairly narrow range. It
did manage to close in the plus column though. This action keeps it near the top
of its trading range and right at the well watched 2100 resistance level.
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The S&P also chopped back and forth but wasn’t able to
stay in the plus column. So far, its recent
breakout from its trading range remains intact.Â
So what do we do?  The fact that the
S&P remains above its recent breakout levels is impressive. Although 2100
remains formidable resistance in the Nasdaq, I’m thinking that the index will be
able to break through it. I’m basing this on the fact that many tech sectors
such as the semis, software, and Internet showed nice follow through on Tuesday.
There’s no need to bet the farm until there’s confirmation though. In the
meantime, focus on commodity related areas that can trade independently of the
indices. Right now, I’m seeing opportunities in the energies (see warning below
though) and metals and mining–specifically the golds.Â
As far as setups, the Oil Service Holders
(
OIH |
Quote |
Chart |
News |
PowerRating) look
poised to resume their strong and persistent uptrend out of a Trend Knockout
(email me if you need the rules). However, wait for an entry since the energies
were weak on Tuesday.Â
FYI
On Wednesday at 11:00 A.M Eastern (new time), I will be
doing my weekly interactive presentation. So far, I have a good show planned (if
I say so myself). I will covering a host of topics including applying
discretion, money and position management, psychology, trading patterns, and of
course, current market conditions and where I’m finding opportunities. Email me
if you need instructions on how to join and/or the archives for the prior
year.Â
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.