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
click here or call 888-484-8220 ext. 1.
On Tuesday, the Nasdaq opened slightly firmer but soon began to drift while waiting on the Fed. It whipsawed on the announcement and then sold off. This action has it
closing near the bottom of its short-term trading range.
The S&P put in a similar performance. This action keeps it stalling below
the 1280 resistance level.
So what do we do? The Nasdaq remains in a short-term
trading range. If it drops any further, it will have two levels of overhead
resistance to overcome (I'll explain this in detail on Wednesday, see below).
The S&P remains stuck in a sideways range. 1280 remains formidable
resistance. Considering this sideways-at-best market, the best action would be
either no action or to continue to focus on areas that can trade independently
of the indices. And right now, selected energies are about the only areas
that fit that bill.
As far as setups, recently mentioned Tidewater (TDW | Quote | Chart | News | PowerRating),
an energy play, looks like it has the potential to continue higher out of a
pattern I call a Bowtie (email me if you need the rules).
Wednesday's With Dave
It's that time again. On Wednesday 08/09/06 at 11:00 AM EST, I will be hosting my weekly interactive lesson.
In addition to market and sector conditions, I will continue to harp on action
to take during choppy markets. This includes waiting for entries, waiting for
follow through, and often doing nothing. 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.
