Keep Going And Going And…
While I do think that volume will
return after Labor Day, I do not think that it will be immediate. Because of the
uncertainty of the market, as seen by the general public, not traders, I think
that people will start wading in slowly, to get a feel for the situation.
Otherwise, I continue to see new
breakouts in the many of the big names. While the indices are idling, the
individual issues are leading us higher.
Let’s continue with this morning’s theme
of stocks that continue to breakout with new highs.
Today’s Watchlist:Â
(
BRCD |
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PowerRating),
(
ARBA |
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PowerRating),
(
NEWP |
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PowerRating)
I took a look at the
intraday Brocade
(
BRCD |
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PowerRating) earlier today, but now I want to discuss the daily.
Brocade is poised to close at a new high on Thursday. First, I want to note that
I am expecting very light volume on Friday, so I would use extra caution and
expect abnormal intraday moves. If you are not used to trading in this type of
environment, consider either paper trading, or taking a three-day weekend. If
the stock does break out, watch for it to continue tomorrow. A move above the
intraday high from the breakout day, Thursday, may offer long
opportunities.Â
Ariba
(
ARBA |
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PowerRating) is
another one of those setups that I discussed this morning, one of stocks that
continue to break out. Again, it has set a new high and is consolidating.
Aggressive traders may want to watch for a breakout above the current high,
while more conservative traders will want to look for a closing move above
resistance, perhaps entering on the following day. Either way, watch for more
resistance near the April highs.
Last on the list for
today’s theme is Newport
(
NEWP |
Quote |
Chart |
News |
PowerRating) looked like it might re-enter the trading
range from two weeks ago, but the buyers quickly came to the rescue. Watch for a
new high close followed by a continuation move on Friday. As I mentioned
earlier, it may be safer to wait for a move next week, but that depends on your
own trading style. If you are a pullback trader, you may want to watch for a
bounce off the trendline formed from the late-July low to the August low. Always
trade a stock as it best fits your style.
Until later,Â