Read Larry Connors' blog – Short Term Trading Strategies
On Tuesday, the Nasdaq opened lower and then chopped sideways. It sold off in late-morning/early afternoon trading but was able to recoup some of those losses late in the day.
The S&P put in a somewhat similar performance.
So What Do We Do? I like the fact that the indices pulled back a little further on Tuesday. As mentioned on Friday, this type of action tends to shake out nervous longs and it attracts some eager shorts. This helps to clear the way for the market to trade higher. Therefore, look for opportunities on the long side but wait for entries just in case the market corrects further.
As far as setups, Sandisk (SNDK | Quote | Chart | News | PowerRating), mentioned last Friday, still looks like it has the potential to rally out of a pullback.
Weekly Show
Wow, has it been a week already? As the frog says, "time's fun when you're having flies." Anyway, on Wednesday at 11:00 AM Eastern, I will be doing my weekly audio/visual interactive presentation. This week we will discuss the goal of having short-term trades turn in to longer-term positions, general guidelines for setting stops, and where I'm seeing opportunities. I'll also take your questions on trading or on individual stocks. As always, admission is free but limited by the software. Email me if you need instructions on how to join (the same each week if you already have them).
Best of luck with your trading on Wednesday!
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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