On Tuesday, the Nasdaq opened firmer and initially rallied but
soon began to drift sideways. Then, just when it looked like another dull day at
resistance, it begin to climb higher. This action has it attempting to break out
of its short-term trading range.
The S&P put in a similar performance. This action puts it above the well
watched 1280 resistance level.
For the first time in a long time, I'm impressed with the sector action.
Software broke out.
Internet broke out of its short-term sideways range.
The semis are attempting to break out of their short-term sideways
range.
Many other areas either found support or are closing in on the top of
their ranges.
So what do we do? Judging from the above comments and
charts, one would think that this is the "all clear." Well, I
don't know about that, but it sure looks like a good start. As usual, follow
through will be key. Don't be a hero just yet. Let the market prove itself
further.
No setups tonight, on follow through, we should see a
plethora of setups.
Wednesdays With Dave
It's that time again. On Wednesday 08/16/06 at 11:00 AM EST, I will be hosting my weekly interactive lesson.
We'll take an in depth look at market and sector conditions. And hopefully, I'll
give my choppy market speech---waiting for entries, waiting for
follow through, and often doing nothing--for the last time. The schedule is fairly light again this
week so I should have plenty time to take your questions on
individual issues or trading in general. As usual, admission is free (and I give money back guarantees if not completely satisfied!).
However, the space is limited by the software. Email me if you need instructions on how to join (the same each
week) or if you would like the archives for the prior year (covering topics such as money & position management, scanning, picking the best setups, sectors, longer-term trend following and a
bunch of other stuff).
Best of luck with your trading on Wednesday!
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.
