Not Wrong This Time
On Friday, the Nasdaq opened weaker but quickly began to
rally. However, it found its morning high by mid-morning and began to sell off.
This action has it closing poorly and suggests it will continue its downtrend
out of a pullback from lows.
The S&PÂ and the Dow chopped in early trading but
then sold off in earnest. This action has them closing poorly and further
suggests that the July lows will be challenged.
So what do we do? In spite of the magnitude of Friday’s
sell off, I still think we have additional downside. I’m basing this on the fact
that the database has generated a plethora of shorts tonight (Friday). In
addition, many sectors themselves are set up (e.g. pullbacks) for additional
downside. These include the banks, semis, software and utilities to name a few.
Also, I believe the Nasdaq has room to play “catch up” the other
indices.
Looking to potential setups, the Software ETFs
(
SWH |
Quote |
Chart |
News |
PowerRating) still look poised to continue their downtrend out of a pullback from lows.
The utilities also look poised to continue to their
downtrend out of a pullback from lows. Look for shorting opportunities in the
holders or in issues themselves such as Dominion Resources
(
D |
Quote |
Chart |
News |
PowerRating) and Sempra
Energy
(
SRE |
Quote |
Chart |
News |
PowerRating)
Other
Once again, I’m still running somewhat behind due to
Isidore. Therefore, if you
did not get a reply on Wednesday night’s offer regarding my sector analysis (see
archive), I promise to get to them soon. Thanks for you patience.
Best of luck with
your trading on Friday!
Dave Landry
P.S. Reminder: Protective stops on
every trade!
“Feel free to quote me, the book is fantastic. It is written for traders who want to know the real basis of
successful trading. No glory stuff. No hero tales. Plain old sound advice which is a rare commodity in this
business”.
Mike Marlow
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