Keep It Light
Each evening we focus
on the most interesting aspects for the upcoming trading
day. The comments are based on observations of the nightly
updates of the Stocks/Sectors and Market Bias pages. They
are provided for educational purposes only and are not
intended to be direct trading advice. Also, keep in mind
that these remarks are made up to 12 hours in advance of the
market’s opening. Therefore, overnight events may alter the
outcome of these observations.
On Thursday, the Nasdaq gapped lower (a) and began to chop
around. A late-day rally was enough to get the index to just above its open but
not enough to put it in the black.
Thursday’s action leaves the recent lows (b) as a possible
downside target and Wednesday’s pivot high (c) likely resistance.
So what do we do? I see no reason to get too excited and
enter a bunch of positions ahead of another possibly news-filled weekend.Â
With that said, keep it light and continue to consider a short or two.
Looking to potential setups, Wendy’s
(
WEN |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday night and on the Pullbacks
Off Highs List, appears to be attempting to rally out of a pullback.
Stocks in fast moves
often only consolidate for a few days before heading higher. With that said,
Lincare Holdings
(
LNCR |
Quote |
Chart |
News |
PowerRating), in the defensive healthcare sector
(
$HCX.X |
Quote |
Chart |
News |
PowerRating)
and on the Proprietary
Momentum List, is in day two of a shallow pullback from highs.
Sealed Air Corp.
(
SEE |
Quote |
Chart |
News |
PowerRating)
appears to be trying to break lower out of a shallow pullback.
Broadcom
(
BRCM |
Quote |
Chart |
News |
PowerRating),
mentioned recently, still looks vulnerable.
Best
of luck with your trading on Friday!Â
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!
Don’t forget to pre-order my new book “Dave
Landry On The Shameless Art Of Self Promotion” at a 20% discount.
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