Hola El Correction
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
markets opening. Therefore, overnight events may alter the
outcome of these observations.
On Thursday, the Nasdaq gapped lower on the open (a) and
ground
lower to close poorly (b).
So what do we do? Obviously, it looks like we are going
through a normal corrective phase. Energy related stocks (and other stocks that
fit the pattern), which have already been correcting, may be the best bet on the
long side in here. What will I be doing? Drinking everything except the
water.
Looking to potential setups, Occidental Petroleum
(
OXY |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, sold off earlier in the day but reversed to close well. This
action may have knocked out nervous longs and attracted eager shorts. This may
be the fuel the stock needs to resume it strong uptrend.
Americredit
(
ACF |
Quote |
Chart |
News |
PowerRating), on the Pullbacks
Off Highs List, looks poised to resume its strong uptrend out of a shallow
pullback/consolidation.
Ivax Corp.
(
IVX |
Quote |
Chart |
News |
PowerRating), also on the Pullbacks
Off Highs List, looks like it has the potential to rally out of a
pullback/Bow Tie/cup and handle. Just wait for follow through to the upside here
as it did close poorly.
Pharmaceutical Product Development
(
PPDI |
Quote |
Chart |
News |
PowerRating), mentioned
Wednesday, appears to be resuming its uptrend out of a pullback.
On the short side, Ecolab
(
ECL |
Quote |
Chart |
News |
PowerRating), mentioned recently, still looks vulnerable.
Best
of luck with your trading on Friday!
Adios Amigos!
P.S. Reminder:
Protective stops on every trade!
P.P.S. For the first time in a coon’s age, I’ll be taking
a few days off. I’m headed south of the border for a little
“Cinco de Mayo.” As usually, my neighbor Bubba Boudreaux will be house
sitting while I’m away. Feel free to stop by for demonstration of his massive
gun collection.
“…While most
trading books talk are long on theory and lack specifics, Dave shows you what to
do Monday morning….â€
Scott
R.
No risk, 30-day, money
back guarantee.