You can stack the odds in your favor — here’s how
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
at=st”>click here or call 888-484-8220 ext. 1
Stacking The Odds In Your Favor
Stocks don’t trade in a vacuum. It’s important to
study the overall market conditions. And, it’s especially important to study the
sector conditions. Let’s look at Abercrombie & Fitch
(
ANF |
Quote |
Chart |
News |
PowerRating), a stock
mentioned recently in my service. Notice below that after making new highs and
trading sideways, the stock broke down and then subsequently pulled back.
This sets up a First Thrust Pattern (as usual, email me if you need the
rules).
Since this is a retail stock, we analyze the
S&P Retail Index. Notice below that the sector had thrust down after just
making new highs and then pulled back. In other words, it too is set up as a
First Thrust.
Next, notice that the overall market, basis the
S&P, has stalled short of its old highs.
Now we have all three pieces in place: the stock
is set up, the sector is set up, and the market is showing signs of
weakness.
Fast forwarding to today, notice that both
retail
and ANF sold off nicely.
As you can see, it often pays off nicely to stack
the odds in your favor.
I covered the above in more detail early today in
my weekly A/V. Email me if you need the link or click
here to view. Once again, I also have the links to
the prior year available (covering subjects such as
money management, position management, entries, damage control, scanning
etc..).
Best of luck with your trading on
Thursday!
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.