Look to the Upside Tomorrow
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.
At the time this is being published, the S&P Globex Futures are trading 8.25 points lower and the Bond Market Futures are trading up 2 ticks.
Heads up, after the close Ebay [EBAY>EBAY] announced slightly better-than-expected earnings. In spite of this, the stock is trading down over 9 points lower in early Instinet after hours trading. This will likely weigh heavy on the Internet stocks and judging from the Globex S&P futures so far, possibly the entire market.
Even though it didn’t close very well (i.e. off the top of the range), Ditech Communications [DITC>DITC], on the Pullbacks List, looks poised to resume its uptrend. Just wait for it to “prove†itself by taking out today’s high (a).
For you breakout players, two stocks on the New 60-day Highs On Double Volume look interesting to me tonight: Hughes Electronics [GMH>GMH] broke to new highs on an expansion of range and Network Peripherals [NPIX>NPIX] broke out of a high level wide-and-loose consolidation today.
After the close, Jeff Cooper and I discussed the fact the many of the “old tech†large cap stocks look vulnerable. With that said, Unisys [UIS>UIS] and Xerox [XRX>XRX], both mentioned over the past few nights, along with IBM [IBM>IBM], on the Proprietary Implosion List, all look poised to resume their meltdowns.
Eaton Corp. [ETN>ETN], on the Pullbacks From Lows List, is yet another stock that looks poised to resume its meltdown.
Best of luck with your trading on Wednesday!
Dave Landry
PS – Reminder: Protective stops on every trade!