Fast Money Returns
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 Friday, the Nasdaq opened flat-ish (a) and began to
rally. The rally continued throughout the day but was met with late day selling.
This has the index closing off its high (b) and creates a slight tail.Â
Even with the last hour sell off, we’ll still score today
as a positive.
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Judging from the momentum and “hot” lists, it
seems that the spec money was back en masse. I saw 10, 20, 30, and yes, even a
40-plus point gain in some of the “funny money” stocks while
“real” companies slid. This suggests to me that at least the fast
money thinks the bottom is in. Me? I’m still not so sure. Fast money can be
fickle–easy come, easy go. Next week should be telling.
For now, I’m sticking with more defensive issues on the
upside and spec issues on the downside. If this rally continues, there’ll be
plenty of chances to enter the more speculative issues on the first pullback.
Looking
to potential setups, Vintage Petroleum
(
VPI |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, appears to be finding support after pulling back into the
area of its recent breakout. This suggests its longer-term uptrend remains
intact.Â
Continuing on the pullback theme, Entergy
(
ETR |
Quote |
Chart |
News |
PowerRating),
also on the Pullbacks
Off Highs List, is a loosely formed high-level cup-and-handle. And
Exxon/Mobil
(
XOM |
Quote |
Chart |
News |
PowerRating) looks poised to rally out of a deep pullback.
On the short side, Coherent
(
COHR |
Quote |
Chart |
News |
PowerRating),
mentioned Thursday night, sold off in spite of an overall strong market.
Level 3 Communications
(
LVLT |
Quote |
Chart |
News |
PowerRating), on the Trading
Where The Action Is List, is in day two of a pullback from lows and looks
poised to resume its strong downtrend.Â
Best
of luck with your trading on Monday!
face=”Arial, Helvetica”>Dave Landry
P.S. Reminder:
Protective stops on every trade!