Several Pullbacks Look Interesting
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 1.20 points lower and the bond market is trading up 2 ticks.
Many portfolio managers “settled up†today so trades would clear before year-end (it takes 3 days for a trade to clear). This, along with those on vacation, should make for thin trading for the rest of the week. Consider this should you decide to trade.
On the Pullbacks List, several stocks look interesting to me tonight. I2 Technologies [ITWO>ITWO] looks poised to make another run to its old highs. Comdisco [CDO>CDO] is consolidating within last Wednesday’s wide range day and looks compressed (and ready to expand again upwards). Nextlink Communications [NXLK>NXLK] is consolidating by forming a triangle. And finally, White Pine Software [WPNE>WPNE], mentioned last night, still looks interesting to me.
On the short side, PNC Bank Corp. [PNC>PNC], mentioned over the past few nights, still looks like it has downside potential. Tandy Corp. [TAN>TAN], mentioned last night, is a pullback from lows that still looks poised to resume its meltdown.
Best of luck with your trading on Wednesday!
PS – Reminder: Protective stops on every trade!