Back To Blue Arrows?

On Monday, the Nasdaq opened flat and began to rally. However, the rally was cut short by news of the "dirty bomb." The market then chopped around for most of the day. Finally, late in the day it began to sell off in earnest. This action has it closing poorly. 

The S&P "tailed off" after trading higher.

So what do we do?  Once again we have some Market Bias Signals points higher.  And once again, I find it hard to get too bullish when you consider the direction of the big blue arrows*---especially when you consider Monday's lackluster performance. All of this is keeping me in the "show me" camp. If we do bounce over the next few days, it should set up a plethora of shorts--especially in tech. For now, look to nibble on the short side in sectors that can trade contra to the indices such as the oils/oil service stocks.

Looking to potential setups, the drillers look poised to resume their out rollover out of an inverted cup and handle. With that said, Helmrich and Payne (HP | Quote | Chart | News | PowerRating) is set up as a pullback from lows/bigger picture inverted cup and handle.

Email Of The Day:

Regarding: Big Blue Arrows Explained

Can you triple smooth them with an ergodic, kinko-mumbo-jumbo oscillator in five different time frames? 

Best of luck with your trading on Tuesday!

Dave Landry

sentivetradingco@prodigy.net

P.S. Reminder: Protective stops on every trade!

*See Friday's commentary for more information on how these things work. Be warned though, it does take a while to fully grasp this concept. In fact, the smarter you are, the more difficult it will be.

"....I have read a dozen books on trading, perhaps more, I have taken courses, and they have all helped me understand this activity called trading......I have hundreds or thousands of little bits of info floating around in my brain that pertain to moving averages, support resistance, PSAR, ADX, etc., etc. etc. Any many of the books were great reading and I'm sure will someday become classics and some already are. But your book was really the first that I felt helped me by giving me a plan of action to integrate all the tools....."

Martin R.

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