Patience Is A Virtue
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My latest trading lesson, Finding
Intraday Trendlines for Daytrading Part I, is also available now.
While I think that the market could
rally after the announcement tomorrow, I’m still hesitant to make any
predictions. Today, I’m going to take a look at some potential long and short
setups. I like to have options ready in case of a move in either direction. If
the market explodes to the upside am I going to go short a high-flying tech
stock? No. I don’t fight the trend. Plan and execute your trades based on the
action of the market.Â
Today’s Watchlist:Â
(
SANM |
Quote |
Chart |
News |
PowerRating),
(
AMKR |
Quote |
Chart |
News |
PowerRating),
(
INKT |
Quote |
Chart |
News |
PowerRating),
(
GDT |
Quote |
Chart |
News |
PowerRating)
Sanmina
(
SANM |
Quote |
Chart |
News |
PowerRating) continues to draw
new patterns with each day, thus we’ll continue to watch it. After breaking out
a couple of weeks ago, it entered a new consolidation. There are currently two
trendlines ready to converge. Perhaps the short-term uptrend, which formed
during the first breakout, will be strong enough to knock Sanmina out of the
recent consolidation. Set your alerts near 88 when watching for a breakout. I’m
hesitant to open a position on a downside break because the consolidation from
last week may provide support. There may not be enough opportunity in an initial
move.
Amkor Tech
(
AMKR |
Quote |
Chart |
News |
PowerRating)
broke down on news on Tuesday. This movement actually broke a support level on
the weekly charts, which may lead to further downward movement. With the next
support level near 24, it is reasonable to look for a 10% (or greater) move
south in the price. Watch for a continuation move tomorrow. Traders may consider
an entry point on a reasonable break of Tuesday’s intraday low.
Intomi
(
INKT |
Quote |
Chart |
News |
PowerRating) moved lower on news
this week. Watch for a a break of support followed by a continuation. Should it
break, look for more support near 96. We may see a pause at 100, as that often
provides psychological support. As always, there’s no need to open a position
before seeing a signal.
There seems to be a divide in the
medical industry. Biotechs move one way, while medical instruments and
pharmaceuticals move another. In some cases, investors connect electrical
instrument manufacturers with medical instrument manufacturers, if they require
technology. For this reason, it’s often difficult to decide which index to
follow.Â
Guidant
(
GDT |
Quote |
Chart |
News |
PowerRating), from one of the
aforementioned groups, has been having some trouble of late. The 50-day MA has
been guiding it lower since April. On Monday we saw a close below near-term
support. Now, we’ll wait for a continuation move. Because Guidant has been
around for a while, we’ll have to use the weekly chart to find more support. If
you do go short, look for some support near 44 and again at 43.
L-3 Communications
(
LLL |
Quote |
Chart |
News |
PowerRating)
moved down significantly in the last three days, relative to its average daily
range. Set your alerts roughly 1/4 point below Monday’s intraday low. In the
case of a breakdown, watch for a pause at each whole number, because the average
daily range of L-3 is small compared other techs.
Until tomorrow,
Waiting in the Wings:
Check back tomorrow
morning at 9:15AM ET for Trading the Open.