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.
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On Friday, the Nasdaq sold off hard for a solid trend day lower. This
action has it trading back below its recent breakout levels.
Ditto for the Ps.
So What Do We Do? Friday was ugly. The fact that the indices have now
given up ALL of their breakout is concerning. The sector action isn't good
either. Banks and retail are breaking down out of their sideways trading ranges.
Most of tech looks like the Nasdaq itself--failing after a recent breakout.
Psychologically, this does not bode well for the market. About the only area
that still looks good at this juncture is the energies (use caution here though
since they are overbought). I suppose this is actually a negative too.
Considering the above, unless we see the mother-of-all turnarounds, aggressive
traders should began watching for transitional short setups (i.e. early trend).
Areas breaking down from high levels will likely provide the best
opportunities.
No setups tonight. On continued weakness, we should see a plethora of
transitional shorts.
Best of luck with your trading on Monday!
Dave Landry
dave@davelandry.com
P.S. Reminder: Protective stops on every trade!
P.P.S. If you would like a free
trial to my trading service, click
here.
