Pullbacks
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 1.10 points lower and the bond market is trading down 1 tick.
Heads up, the Employment Report is scheduled for release tomorrow. This will likely cause extreme volatility in early trading in both the stock and bond markets.
There are several stocks on the Pullbacks List that look interesting to me tonight. Hughes Electronics [GMH>GMH], is a high level “mini†cup and handle or if you prefer, a 3 bar pullback from highs (a). Bea Systems [BEAS>BEAS] is rallying out of a deep pullback and looks poised to challenge its old highs. And finally, JDS Uniphase [JDSU>JDSU] closed well today and looks poised to resume its strong underlying uptrend.
For you breakout players, Lucent [LU>LU], mentioned last night as a cup and handle (see archive), rallied nicely today and is just shy of taking out its all time highs. CheckFree [CKFR>CKFR], also mentioned last night, broke out of a sideways consolidation on an expansion of range today.
On the short side, Unicom [UCM>UCM], on the Pullbacks From Lows List, looks poised to resume its strong downtrend.
Best of luck with your trading on Friday!
PS – Reminder: Protective stops on every trade!