Be A Love, Not A Fighter
By Dave Landry | Random Thoughts
Random Thoughts
The Ps ended down a smidge. The Quack ended up a bit. And, the Rusty ended up a little.
The market felt a little stronger than it seemed on the surface.
Drugs blasted to new highs. Delivery remains on fire here. It was off its best levels but still ended up nearly 2%. Biotech also ended up around 2%.
On a related note, Health Services was also strong, gaining over ½% to close at all-time highs.
Tech in general was strong.
The Semis rallied nicely out of a pullback and are just shy of new highs.
Hardware closed at new highs.
Leisure made new highs. Resorts & Casinos are leading the way here. All isn’t good here though, Restaurants are stinking up the joint.
Most other areas are either at or near new highs or have just pulled back–said alternatively, trending.
Again, internally, the market felt strong.
Even Gold and Silver (the stocks), which have been in a longer-term downtrend, still appear to be bottoming out. Start looking to nibble here but obviously only on setups and, of course, entries.
On a related vein (pun intended), Uranium (still) also appears to be putting in a bottom.
So what do we do? Other than a few caveats like the Restaurants, most areas remain strong. Therefore, the long side still remains the side to play. Melamed said it best, be a lover (of trends), not a fighter. Avoid the short side as long as the market is trending and/or remains at/near new highs. As usual, make sure you pick the best of the best setups (warning, shameless plug ahead: see the aforementioned stock selection webinar) and wait for entries on those candidates. Once triggered, honor/trail your stops and take partial profits if offered.
Come to the chart show today if you’re not too busy saving lives, building buildings, repairing automatic transmissions, or doing other great things.
Best of luck with your trading today!
Dave