17% Higher By Year End?
On Wednesday, the Nasdaq gapped higher and continued higher
throughout the morning. Then, after consolidating throughout mid-day, it resumed
its rally going into the close. This action has it closing well.Â
Once again, the 200-day
moving average, circa 1850, remains a potential first target here.Â
The S&P put in a similar performance. This action also
has it closing well.
Once again, the 200-day moving average remains a potential
target here too.Â
So what do we do? There sure was a lot of
celebrating today (Wednesday) on Wall Street. The “correction has
ended”, “17% higher by the end of the year”, and “now’s a
good time to buy beaten down stocks” were just a few of the things that I
heard (and I keep the mute button on for most of the day!). Me? I’m not so sure.
The sharp sell off after making new highs has caught a lot of people off guard.
And so far, this only looks like a pullback (in a down thrust). Even if the
market did continue higher, it still has a ton of overhead resistance to
overcome. Therefore, considering the above, begin looking for potential shorting
opportunities. Technology in general might be a good place to look. Aggressive
daytraders might look for shorting opportunities in the index shares should they
gap sharply higher on the open and then show early signs of reversing (i.e. play
an opening gap reversal).
Looking to potential setups, Molex
(
MOLX |
Quote |
Chart |
News |
PowerRating), in the
vulnerable semis/electronics, looks like it has the potential to continue its
downtrend out of a pullback.
Best of luck with your trading on Thursday!
Dave Landry
P.S. Reminder: Protective stops on every trade!
P.P.S. My new 20-hour course is now shipping.
Click here for details.
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