Three Areas To Look For Opportunities
I’m Dave Landry and I approved this column.
On Tuesday, the Nasdaq gapped higher on the open and
generally worked its way higher throughout mid-day. Then, after drifting lower
in early afternoon trading, it resumed its rally late in the day–accelerating
going into the close.
This action has it closing well. So far though, it remains
below its 200-day moving average–a level that corresponds with short-term
resistance.
The S&P put in a somewhat similar performance.
So what do we do? So far, the market
only appears to be in bounce mode. This action is beginning to set up pullbacks
from lows in a variety of sectors. Therefore, use this as an opportunity
to start putting together your watch list for potential shorts. Metals &
mining, the semis, and financial services are a few good places to began
watching. Aggressive traders looking to get head start on a swing trade, might
look to fade an opening gap reversal (in individual stocks).
As far as setups, Cymer
(
CYMI |
Quote |
Chart |
News |
PowerRating), mentioned recently,
still looks poised to continue lower out of a Persistent Pullback. However, wait
for confirmation. In this case, this would be if it takes out (trades below) its
recent pivot lows (a).
Best of luck with your trading on Wednesday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
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more, or to order.