Should You Hit The Sell Key? My Answer Might Surprise You – Dave Landry on Trading

Should You Hit The Sell Key? My Answer Might Surprise You

By Dave Landry | Daily Commentary

SellKeyRandom Thoughts

The Ps rallied a bit but stalled out to close only slightly higher. So far, everything mentioned recently still remains intact: They have Bowtied down from all-time highs-a signal that should not be ignored. There’s still the potential that the May & August peaks could be double tops. And, the index has just generally trended lower for the past several weeks.

The Quack still looks much better on a relative strength basis.

It had a decent rally, continuing its bounce off the bottom of its sideways trading range.

Most sectors still look questionable at best. Many, like the Ps, have Bowtied down from major highs. This suggests that the most amount of people are on the wrong side of the market and they could look to bail on additional weakness. This is especially true for the “Johnny come latlies.” See my August 27th column: “You Might Want To Write This Down” for more on this.

Gold and Silver dipped intra-day but recovered to close well. So far, they still look like they have put in a bottom.

I am proud to announce that I have an article in the September issue of TRADERS’ Click on the logo below to read–it is the first article listed on the front cover titled “Doing The Right Thing.”


To recap, not much has changed just yet. The Ps still look questionable. Most sectors–with the major exception of Gold and Silver–look questionable.

So what do we do? Again, overall, I think there is still cause for concern. This doesn’t mean that you want to make any drastic decisions. If you still have longs, then let the market prove you wrong. Sometimes, even if the market does tank, your trending stock can defy gravity. We have one left in the portfolio that has risen nearly 4% during the same period the Ps are down a like amount (my apologies to my peeps on my Trading Service for that jinx). And, only take new positions in areas that appear to be trading contra to the overall market like the recently and aforementioned Gold and Silver stocks. Do continue to consider some shorts. Again, I still like the previous high fliers here such as Retail-just wait for entries on those setups. And again, stops will get hit if you’re wrong about being still long and entries will put you into some shorts on a slide. As I preach, let this simple ebb and flow control your portfolio-no need to be a hero.

Futures are firm pre-market.

Best of luck with your trading today!



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