Dave Landry – Page 1432 – 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

More On What To Do With Your Hands

By Dave Landry | Random Thoughts

https://www.dreamstime.com/stock-photos-peace-woman-image16058943Random Thoughts

It is deja vu all over again: The S&P closed at all-time highs. Ditto for the Rusty. The Quack closed at decade plus highs.

And again, the market is making new highs. As a trend follower, you can’t fight it.

Many sectors that looked like they were running out of steam coming into Monday turned right back up.

So things continue to improve. Does this mean that you should jump on mid-stream? No. The market remains overbought and due to correct. As I have been saying lately, overbought environments create a damned if you do and damned if you don’t dilemma. If you buy, the market corrects, if you don’t, the market becomes even more overbought.

Since the overbought market became even more overbought on Monday, nothing has changed. Therefore, considering the above, I still think keeping your hands in your pockets is still the best course of action for now. If you feel like you really have to do something, maybe put one hand in your pocket and with the other, make a peace sign (Isn’t that ironic? Don’t You Think?). The good news is that since the methodology requires a pullback, there aren’t many meaningful setups at this juncture. Wait for setups. When they occur, wait for entries. Once triggered, honor your stops. These simple techniques will help to keep you on the right side of the market and take you out when you are wrong. See recent webinars and columns on portfolio ebb and flow.

Futures are flat pre-market.

Best of luck with your trading today!

Dave

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