Dave Landry – Page 1324 – Dave Landry on Trading

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About the Author

Dave Landry has been actively trading the markets since the early 90s. He is managing member of Sentive Trading, LLC (est 1995) and author of 3 books of trading including The Layman’s Guide to Trading Stocks. He has made several television appearances, written articles for numerous magazines, He has spoken at trading conferences throughout the world (including Russia, Hong Kong, Australia, Germany, Italy, and others). He has been publishing daily web based commentary on technical trading since 1997. He has a B.S. in Computer Science and an MBA. He was registered Commodity Trading Advisor (CTA) from 1995 to 2009. He is a board member of the American Association of Professional Technical Analysts. Dave can be reached at www.davelandry.com

Don’t Argue With This

By Dave Landry | Random Thoughts

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The Ps ended slightly higher, gaining nearly 1/4%. Net net, they haven’t made much forward progress in the last couple of weeks. Still, they are just shy of all-time highs.

The Quack was a little stronger. It gained nearly ½%. It too hasn’t made much forward progress as of late but it is just shy of multi-year highs.

It was another day where internally things felt strong. I suppose this isn’t a shocker when you look at the Rusty. It was the big winner on the day, gaining over ½%. This action has it closing at all-time highs.

The definition of a market uptrend in its simplest terms is new highs. Therefore, even though the indices haven’t been on fire lately, you don’t want to argue with a market that is at or near new highs.

The sector action has been very impressive lately.

Drugs have been blasting higher as of late.

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Health Services have also been accelerating higher.

Ditto for Resorts & Casinos.

It’s good to see some brick and mortar areas—literally—like Material & Construction is breaking out to new highs.

Gold & Silver still appear to be putting in a bottom. Watch for transitional setups here.

There are a few areas that are lagging such as Retail & the Restaurants but most areas, like the market itself, remain at or near new highs.

So what do we do? Well, again, the simplest definition of a trend is new highs. The market and most sectors are at or near new highs. Even some of the longer-term lagging areas such as the aforementioned Gold & Silver stocks appear to be putting in a bottom. Therefore, continue to focus on the long side. Since we never know how long a trend will last—not even the great and mighty Big Dave—look to take partial profits and trail stops as offered. And, of course, honor your stops just in case.

Best of luck with your trading today!

Dave

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