Don’t Swim Against The Tide

Random Thoughts

The Ps sold off a bit but their breakout remains intact. Ditto for the Rusty (IWM). Ideally, I’d like to see a more impressive breakout but I guess you can’t have it all. And, if you did, where would you put it? (Wright?).

Speaking of nice breakouts, the Quack (Nasdaq) is looking great. So far, its nice persistent uptrend remains intact and it is just off of its highest level since the dotcom bubble. You people who said that it would never get back to those old highs have only been right for 15 years. Seriously, persistency is a very powerful concept. The more I speak about it the more I realize this. See my Youtube Channel for Dave Landry’s The Week In Charts from last Thursday. Also, I did another webinar last week just on Persistent Pullbacks and Trend Knockouts—and combinations thereof. Join my channel because as soon as it gets posted it will show up in my likes.

As you would imagine with the Quack performing well, so is Tech. Most areas like the Semis, Drugs, Biotech, Hardware, and Software remain near new highs and have only pulled back a bit-like the index itself.

Many other areas outside of Tech such as Health Services and Retail  remain at or near new highs.

Defense remains in a longer-term uptrend and has only pulled back so far.

Metals & Mining still appear to be bottoming out. I still like Gold here but as I preach, be careful since it appears to be more of a process than an event. I also like the Rare Earth stocks. The risk to reward could be tremendous since most have been beaten up so badly. This is not for the faint of heart though. These stocks are extremely volatile. Consider yourself warned!

I still think the Energies are putting in a bottom—have you filled up lately? Unfortunately, like Gold and other commodity related areas it too might just be more of a process than an event.

As a general statement, the state of the market is good.

All isn’t rosy in the world though. The Trannies have stalled near the top of their range. This action keeps them stuck in a range. Also, although they bounced a bit with Bonds on Friday, anything interest rate sensitive such as Real Estate and the Utilities still look dubious.

So what do we do? Don’t fight the tape. As long as the indices and most sectors remain in uptrends and at or near new highs there’s no reason to swim against the tide. Go with the flow. As usual, honor your stops just in case. Any trade, no matter how well thought, can turn into a loser. Speaking of defense, never forget that a good offense is often your best defense. Warning-soft sell ahead: It’s too bad there’s not a 14 hour course on stock picking. Wait, there is! Special offer: From now until Friday (03/06/15) buy my Stock Selection Course and get 1-year free to my trading service—that’s $1497 in savings! Learn how to pick stocks and then compare your picks to mind. What a great way to not only see things in theory but also in practice.

Best of luck with your trading today!

Dave